The Limitation That a Consumer's Total Expenditure on Goods and Services

question 14

Multiple Choice

The limitation that a consumer's total expenditure on goods and services purchased cannot exceed the income available is referred to as

• A)maximizing behavior.
• B)economizing behavior.
• C)the price constraint.
• D)the budget constraint.

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Definitions:

Basis of Economy

The foundational elements or activities that support and drive the economic systems, such as production, consumption, and trade.

Self-governing

The capability of an organization or entity to regulate itself without external intervention.

Private Sector Organizations

Businesses and corporations operated by private individuals or entities predominantly aimed at earning profits.

Public Sector Organizations

Entities that are part of the government structure, funded by taxpayers, and serve the public interest.