The Graph of the Budget Line Below Has Dollars on the Vertical

question 31

Multiple Choice

The graph of the budget line below has dollars on the vertical axis and food on the horizontal axis.Which statement is false?

• A)The vertical intercept represents all money available for purchasing
• B)The distance OA shows the amount of money spent on OD amount of food
• C)If the amount of money available is known in this graph, then the absolute and relative price of food is known also
• D)The horizontal intercept represents all the food the consumer could purchase with the budget available

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Definitions:

Nonrival

A good or service that can be consumed by one individual without preventing the consumption of the good by another individual.

Nonexcludable

A characteristic of a public good, indicating that it is not feasible to prevent non-paying customers from consuming the good.

Excludable

An excludable good is one from which it is possible to prevent people from benefiting unless they have paid for it.

Public Good

A good or service offered to every member of a society for free, provided by either the government or a private entity or group, without seeking profit.