A budget line is a graph that shows the various combinations of two products that a
A) consumer can buy with a given amount of money income.
B) business firm can produce with a given budget.
C) household can produce with a given amount of resources.
D) nation can trade with another nation.

Question

Quizplus · Accepted Answer

A budget line represents the different combinations of two goods that a consumer can purchase with a given amount of money, so the correct answer is A. A budget line does not relate to production or trade between nations.

A Budget Line Is a Graph That Shows the Various