Any combination of goods lying outside of the budget line:
A)implies that the consumer is not spending all of his income.
B)yields less utility than any point on the budget line.
C)yields less utility than any point inside the budget line.
D)is unattainable, given the consumer's income.

Question

Quizplus · Accepted Answer

Any combination of goods lying outside of the budget line is unattainable, given the consumer's income. This is because the budget line represents all the possible combinations of goods that the consumer can purchase, given their income and the prices of the goods. Any combination outside of this line would require the consumer to spend more money than they have available.

Any Combination of Goods Lying Outside of the Budget Line