Which Statement Correctly Uses the Concept of a Household Budget

question 298

Multiple Choice

Which statement correctly uses the concept of a household budget constraint to explain the high level of consumer spending on days such as Black Friday in the United States or Singles' Day in China?

• A) Employers typically give employees big bonuses on those shopping days, so income increases and the budget line shifts outward.
• B) Consumers gain more utility from goods on those shopping days because they have greater need for the goods at that time of year.
• C) There is no change in the household budget line on those shopping days, but the price decreases cause consumer utility to increase on these days.
• D) Sellers reduce the prices of many products on those shopping days, effectively shifting the household budget line outward temporarily.

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Definitions:

Natural Phenomena

Events or situations that occur in the natural world and can be observed and studied scientifically.

Predictions

Statements or forecasts about the future, often based on current data or trends.

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Individuals or groups who commit acts of terror motivated by religious beliefs or goals, often aiming to impose their interpretations of faith on others.

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The process of seeking knowledge through observation, experimentation, and evidence-based research.