A Person's Consumption Possibilities Is Defined by the Budget Line

question 62

Multiple Choice

A person's consumption possibilities is defined by the budget line because

• A) it marks the boundary between what is affordable and unaffordable.
• B) it represents the individual's preference for different combinations of goods.
• C) it marks the boundary between what can be produced and what is unattainable given the current state of technology and resources.
• D) all consumers must consume on their budget line.

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Definitions:

Script

A schema for routine events. See also schema and story grammar.

Classical View

A traditional perspective or theory within a field that has been widely accepted over time.

Rumelhart

Rumelhart is best known for his work in cognitive psychology and artificial intelligence, particularly in the development of the parallel distributed processing framework.