The Household's Budget Constraint Shows That

question 26

Multiple Choice

The household's budget constraint shows that:

• A)sources of fund = uses of funds.
• B)profits are the largest part of income
• C)labour income is the largest part of income.
• D)consumption is the largest part of spending.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to buy at a specific price, holding all other factors constant.

Quantity Supplied

The total amount of a commodity that producers are willing and able to sell at a given price level within a specified time period.

Consumer Surplus

The benefit or surplus that consumers receive from purchasing goods and services at a price lower than the highest price they would be willing to pay.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.