The model that economists use for illustrating the process of individual choice in a situation of scarcity is the _________________, sometimes also called the opportunity set, a diagram which shows what choices are possible.
A) consumption set
B) budget constraint
C) original budget
D) income cap

Question

Quizplus · Accepted Answer

The budget constraint model is used by economists to illustrate the process of individual choice in a situation of scarcity. It shows the combination of goods and services that a consumer can afford with a limited budget, effectively outlining the opportunity set or the choices available.

The Model That Economists Use for Illustrating the Process of Individual