A Budget Constraint

question 23

Multiple Choice

A budget constraint:

• A) shows a constant dollar amount spent on different combinations of goods, and each bundle brings the same utility.
• B) shows a constant dollar amount spent on different combinations of goods, and each bundle brings a different amount of utility.
• C) shows a constant amount of utility gained by consuming different combinations of goods, and each bundle costs the same.
• D) None of these is true.

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Definitions:

Credibility

The quality of being trusted and believed in, often associated with accuracy and reliability.

Skepticism

An attitude of questioning or doubting the validity or authenticity of something supposed to be factual.

Illogical

Lacking sense or clear, sound reasoning; not following the principles of logic.

Inaccurate

Refers to something that is not correct or precise.