Budget Constraints Exist for Consumers Because

question 57

Multiple Choice

Budget constraints exist for consumers because

• A)their utility from consuming goods eventually reaches a maximum level
• B)even with unlimited incomes,they have to pay for each good they consume
• C)they have to pay for goods and they have limited incomes
• D)prices and income are inversely related
• E)demand curves for goods generally slope downward

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Definitions:

Performance Evaluation

The process of assessing and reviewing an employee's or an organization's performance against predetermined objectives or criteria.

Bottom-line Profit

The net income or the final profit figure after all expenses, taxes, and costs have been subtracted from total revenues.

Net Realisable Value Method

An accounting technique used to value inventory or assets, determining the estimated selling price in the ordinary course of business minus any costs necessary to make the sale.

By-product Revenue

Revenue generated from secondary products produced during the manufacturing process of a primary product.