Any combination of goods lying outside of the budget line:

A) implies that the consumer is not spending all his income.
B) yields less utility than any point on the budget line.
C) yields less utility than any point inside the budget line.
D) is unattainable,given the consumer's income.

Question

Rahaf Farhan · Accepted Answer

Final Answer : D, Explanation :  Any combination of goods lying outside of the budget line is unattainable given the consumer's income. The budget line represents all the combinations of goods that the consumer can afford with their given income. Any combination of goods outside of the budget line would require more income than the consumer currently has.

Any combination of goods lying outside of the budget line:

A) implies that the consumer is not spending all his income.
B) yields less utility than any point on the budget line.
C) yields less utility than any point inside the budget line.
D) is unattainable,given the consumer's income.

Definitions

Learning Objectives

Learning Objectives

Related questions

Any combination of goods lying outside of the budget line:A) implies that the consumer is not spending all his income.B) yields less utility than any point on the budget line.C) yields less utility than any point inside the budget line.D) is unattainable,given the consumer's income.

Definitions

Learning Objectives

Learning Objectives

Related questions

Any combination of goods lying outside of the budget line:

A) implies that the consumer is not spending all his income.
B) yields less utility than any point on the budget line.
C) yields less utility than any point inside the budget line.
D) is unattainable,given the consumer's income.