-A budget line
A) has a positive slope.
B) represents combinations of goods a consumer desires.
C) marks the boundary between what a consumer can afford and cannot afford.
D) is the same as the production possibilities frontier.
E) is the same as a demand curve.

Question

-A budget line
A) has a positive slope. 
B) represents combinations of goods a consumer desires. 
C) marks the boundary between what a consumer can afford and cannot afford. 
D) is the same as the production possibilities frontier. 
E) is the same as a demand curve.

Quizplus · Accepted Answer

A budget line represents the combinations of two goods that a consumer can purchase given their income and the prices of the goods, marking the boundary between what is affordable and what is not.

-A Budget Line