Which of the Following Is Shown by a Budget Line

question 98

Multiple Choice

Which of the following is shown by a budget line?
i.The combinations of goods a person can afford
ii.The production possibilities for a person
iii.The combinations of goods a person cannot afford

• A) i only
• B) i and ii
• C) i and iii
• D) ii and iii
• E) ii only

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Definitions:

Gross Profit Ratio

The proportion of money left over from revenues after accounting for the cost of goods sold.

FOB Shipping Point

A term that indicates the buyer is responsible for goods once they leave the seller's premises, including paying shipping costs and bearing the risk of loss in transit.

Record Revenue

The act of documenting the income earned by a company from its business activities during a specific period, following accounting principles.

Gross Margin Ratio

A financial metric that measures the difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.