Podcast
Questions and Answers
What does the budget constraint identify?
What does the budget constraint identify?
- Combinations of goods and services the consumer can afford with a limited budget, at given prices (correct)
- The total amount of money a consumer can spend on goods and services
- Consumer preferences for goods and services
- The quantity of goods and services a consumer can purchase
What are the two facts of economic life that individuals face?
What are the two facts of economic life that individuals face?
- Having to pay for goods and services, and having limited funds to spend (correct)
- Having unlimited resources to spend, and having no constraints
- Having to save money for future purchases, and having to invest in goods and services
- Having to choose between goods and services, and having unlimited funds to spend
What does the budget constraint summarize?
What does the budget constraint summarize?
- Consumer preferences for goods and services
- The total amount of money a consumer can spend on goods and services
- The facts of having to pay for goods and services, and having limited funds to spend (correct)
- The quantity of goods and services a consumer can purchase
What is the purpose of understanding economic choices that people make?
What is the purpose of understanding economic choices that people make?
What does the budget constraint help to identify?
What does the budget constraint help to identify?
Flashcards
Budget Constraint
Budget Constraint
Combinations of goods/services a consumer can afford with their budget, given prices.
Economic Life: Two Realities
Economic Life: Two Realities
Needing to pay for goods/services and having limited funds.
Budget Constraint: Summary
Budget Constraint: Summary
Summarizes the need to pay and having limited funds.
Why Study Economic Choices?
Why Study Economic Choices?
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Budget Constraint: Identification
Budget Constraint: Identification
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