Which of the Following Is True About a Budget Constraint

question 153

Multiple Choice

Which of the following is true about a budget constraint?

• A)Represents the bundles of consumption that make a consumer equally happy.
• B)Refers to the limited amount of income available to consumers to spend on goods and services.
• C)Reflects the desire by consumers to increase their income.
• D)Shows the prices that a consumer chooses to pay for products he consumes.

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Definitions:

General Journal Entries

Entries made in the general journal to record financial transactions in the accounting system.

Invoice Price

The price listed on an invoice, representing the amount charged by the seller to the buyer for goods or services provided.

Sales Tax

A tax imposed by a government on the sale of goods and services, typically calculated as a percentage of the purchase price.

General Journal Entries

Recorded business transactions in the general journal, forming the foundation of a company's financial records.