Question

Soal 10 A person's consumption possibilities is defined the budget line because Select one:
A. all consumers must consume on their budget line.
B. it represents the individual's preference for different combinations of goods.
C. it marks the boundary between what is affordable and unaffordable.
D. it marks the boundary between what can be produced and what is unattainable given the current state of technology and resources

Answer 1

Answer:

(C) it marks the boundary between what is affordable and unaffordable.

Explanation:

Budget line depicts all possible combinations of two goods that can be purchased by the consumer by spending his entire income at the given prices.

In the above figure, points B and C are on the budget line and point A lie inside the budget line.Point D lie outside the budget line.

Point A, B and C are affordable whereas point D is unaffordable.

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