The budget constraint line differs from the production possibilities curve in that it shows the maximum allowable combination of goods that are:
A) inventoried.
B) produced.
C) sold.
D) affordable.

Question

Quizplus · Accepted Answer

The budget constraint line represents the combinations of goods and services that a consumer can afford to purchase at given prices with a given income, hence it shows the maximum allowable combination of goods that are affordable.

The Budget Constraint Line Differs from the Production Possibilities Curve