A budget constraint
A)does not occur if there is scarcity.
B)enables choices to be avoided.
C)is a way to overcome scarcity.
D)forces people to make choices.
E)prohibits consumers from spending.

Question

Quizplus · Accepted Answer

A budget constraint forces people to make choices because it sets a limit on the amount of money a person can spend. When there is scarcity, people must make choices about how to allocate their limited resources, and a budget constraint helps them do so by providing a clear limit on their spending. However, a budget constraint does not enable choices to be avoided or prohibit consumers from spending, and it is not a way to overcome scarcity, but rather a way to manage it.

A Budget Constraint