A set of baskets that a consumer can purchase with a limited amount of income is called what?
A)Consumer choice
B)Consumer purchase
C)Budget Constraint
D)Budget line

Question

Quizplus · Accepted Answer

The set of baskets that a consumer can purchase with a limited amount of income is called the budget constraint. This is represented graphically by a budget line, which shows all the combinations of two goods that a consumer can afford given his or her income and the prices of the goods. Therefore, the best choice is option C, budget constraint. Options A and B are not comprehensive enough, and option D refers to the graphical representation of the budget constraint rather than the concept itself. A set of baskets that a consumer can purchase with a limited amount of income is called a budget constraint.

A Set of Baskets That a Consumer Can Purchase with a Limited