In Moving Along a Given Budget Line

question 352

Multiple Choice

In moving along a given budget line,

• A)the prices of both products and money income are assumed to be constant.
• B)each point on the line will be equally satisfactory to consumers.
• C)money income varies, but the prices of the two goods are constant.
• D)the prices of both products are assumed to vary, but money income is constant.

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Definitions:

Wages Payable

An account that reflects the total amount owed to employees for work performed that has not yet been paid.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Accounts Receivable

Amounts due from customers for merchandise or services rendered by a corporation, still awaiting payment.