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

Question

Quizplus · Accepted Answer

A budget line shows the combinations of goods a person can afford (i) and implicitly indicates the combinations they cannot afford (iii) by showing the boundary of their budget constraint.

Which of the Following Is Shown by a Budget Line