A curve that shows the combination of goods that a consumer is able to purchase by spending all of her income is called a(n)
A)income-consumption curve
B)income-allocation curve
C)budget line
D)indifference curve
E)budget-indifference curve

Question

Quizplus · Accepted Answer

A budget line shows the combination of goods a consumer is able to purchase with their given income, so C is the correct answer. An income-consumption curve and an indifference curve are related to consumer preferences and choice, while an income-allocation curve and a budget-indifference curve are not common terms used in economics.

A Curve That Shows the Combination of Goods That a Consumer