A Budget Line Is Defined as

question 193

Multiple Choice

A budget line is defined as

• A)the number of units of a good that can be purchased over a range of prices.
• B)the combinations of a set of two goods that can be purchased, given current income and current prices for the goods.
• C)how a household's budget is allocated to various members of the family.
• D)the maximum amount of money that can be spent.
• E)the combinations of a set of two goods that the household prefers over other combinations.

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Definitions:

Units In

A term referring to the quantity of stock or inventory items received or available in a supply chain or business.

Extension Column

In accounting, a column in ledger books or spreadsheets where amounts are extended; for example, quantity multiplied by unit price.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

Average Cost Method

A method of valuing inventory that is based on the assumption that the costs of all items on hand are averaged and shared evenly among all units.