Joe's budget line reflects the _____ available to Joe if he spends _____ of his income.
A)consumption bundles;all
B)consumption bundles;part
C)utility;all
D)utility;part

Question

Quizplus · Accepted Answer

A budget line shows all the possible consumption bundles that can be purchased with a given income. Therefore, option A is the correct answer. Option B is incorrect because the budget line shows all possible consumption bundles, not just some. Option C and D are not correct because the budget line is not related to utility, but rather to the physical constraints of income and prices.

Joe's Budget Line Reflects the _____ Available to Joe If