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 is a graph that shows all the possible combinations of two goods that a consumer can purchase with a given amount of money income. It represents the boundary of the consumer’s choice set, showing all the possible combinations of two goods that the consumer can afford at a given price. Therefore, choice A is the best answer.

A Budget Line Is a Graph That Shows the Various