A Budget That Is Developed Around One Particular Level of Activity

question 55

Multiple Choice

A budget that is developed around one particular level of activity is

• A) a static budget.
• B) a continuous budget.
• C) an incremental budget.
• D) none of these.

---

Definitions:

Px/Py

A ratio indicating the price of one good (Px) relative to the price of another good (Py), used in economics to analyze consumer choice and purchasing power.

Indifference Curves

Graphical representations used in microeconomics to show combinations of two goods that give the consumer the same level of satisfaction.

Concave

A shape or curve that is rounded inward, like the inside of a circle or sphere, often used in the context of mathematical functions or geometric figures.

Convex

A shape or function that curves outward, where the line connecting any two points on it lies above or on the curve.