Which One of the Following Statements About the Budget Line

question 120

Multiple Choice

Which one of the following statements about the budget line is false? The budget line

• A)separates affordable consumption points from unaffordable consumption points.
• B)is based on fixed prices.
• C)is based on fixed income.
• D)is based on fixed quantities.
• E)constrains consumer choices.

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Definitions:

Inventory

Inventory consists of the goods and materials a business holds for the purpose of resale or production.

Long-Term Asset

A resource that is expected to provide economic benefits to a company for more than one fiscal year.

Balance Sheet

A financial overview presenting the resources, obligations, and equity of shareholders of a company at a specific point in time.

Gross Profit

The difference between revenue and the cost of goods sold before deducting operating expenses, indicating the efficiency of core operations.