A Budget Line Is a Straight Line Designed to Show

question 147

Multiple Choice

A budget line is a straight line designed to show

• A)how income is related to hours worked.
• B)all combinations of two goods that can be purchased with a given income.
• C)the way a homemaker should divide money among several commodities.
• D)that if more money is spent on one good, the breadwinner must work all the harder to maintain a satisfactory level of living.
• E)preferences for goods and services.

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