A Point Lying Inside the Budget Line Indicates

question 35

Multiple Choice

A point lying inside the budget line indicates:

• A)an unattainable market basket for the consumer.
• B)the consumer is not spending all of his or her income.
• C)the consumer has exhausted his income on consumption.
• D)that one of the goods consumed is an economic bad.

---

Definitions:

Cash Flow Amounts

The net amount of cash and cash-equivalents being transferred into and out of a business.