The maximum combinations of goods and services a consumer can buy because he or she has a limited amount of money to spend is called the
A)production possibilities.
B)marginal propensity to consume.
C)maximum total utility curve.
D)indifference curve.
E)budget constraint.

Question

Quizplus · Accepted Answer

The maximum combinations of goods and services a consumer can buy with a limited amount of money is represented by the budget constraint. It shows the various combinations of goods and services that a consumer can purchase with a given income, and it indicates the trade-off between different goods and services. Therefore, Option E is the correct answer.

The Maximum Combinations of Goods and Services a Consumer Can