Moving Along the Budget Line

question 360

Multiple Choice

Moving along the budget line

• A) total utility is held constant.
• B) quantities are held constant.
• C) income and prices are held constant, but quantities change.
• D) prices are held constant, but income and total utility change.

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Definitions:

Mark-up

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.

Deferred Tax Asset

Financial accounting that recognizes reduced income tax in the future due to deductible temporary differences and carryforwards.

Unrealised Profit

Profit that has been generated but not yet realized through a transaction, such as an increase in value of an investment that has not yet been sold for cash.