The Alternative Combinations of Two Goods That a Consumer Can

question 80

Multiple Choice

The alternative combinations of two goods that a consumer can purchase with a specific money income is shown by

• A) a production possibilities curve.
• B) a demand curve.
• C) a consumer expenditure line.
• D) a budget line.

---

Definitions:

Marginal Costs

The increase in total production cost that comes from making or producing one additional unit.

Average Total Costs

The cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Technological Change

The process of innovation and development of new methods, products, or processes, driving efficiency and economic growth.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, making them consistent regardless of business activity levels.