The Budget Line Facing a Household Includes Information on

question 129

Multiple Choice

The budget line facing a household includes information on

• A)prices of two goods and household income.
• B)household income and the price of money.
• C)the price of one good and household income.
• D)the price of two goods but no information on household income.
• E)preferences of goods at various prices.

---

Definitions:

Income Tax Revenue

The total sum of money collected by the government from individuals or businesses based on earned income and profits.

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to a change in price.

Inelastic

Describes a situation where the demand or supply for a good or service is unresponsive to changes in price.