The possible combinations of goods that can be purchased with a specific income are called the
A) budget constraint.
B) indifference map.
C) marginal rate of substitution.
D) income-consumption curve.

Question

Quizplus · Accepted Answer

The budget constraint represents the different combinations of goods that can be purchased with a specific income. This is typically shown graphically as a budget line, which demonstrates the trade-off between purchasing two goods with a limited budget. Therefore, the correct answer is A.

The Possible Combinations of Goods That Can Be Purchased with a Specific