Evaluate the truthfulness of the following statements.
I. All points to the interior of the budget constraint are affordable.
II) All points that lie on the budget constraint cost the same amount of money.
A) Both I and II are true.
B) Both I and II are false.
C) I is true; II is false.
D) I is false; II is true.

Question

Evaluate the truthfulness of the following statements. 
I. All points to the interior of the budget constraint are affordable.
II) All points that lie on the budget constraint cost the same amount of money.
A) Both I and II are true.
B) Both I and II are false.
C) I is true; II is false.
D) I is false; II is true.

Quizplus · Accepted Answer

I. All points to the interior of the budget constraint are affordable. This is true because any point inside the budget constraint represents a combination of goods that can be purchased with the given budget.II) All points that lie on the budget constraint cost the same amount of money. This is also true because any point on the budget constraint represents a combination of goods that exhausts the entire budget.

Evaluate the Truthfulness of the Following Statements