Consumer Choice and Budget Constraint Quiz
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Questions and Answers

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?

  • 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?

  • 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?

    <p>To know what people are trying to achieve and the constraints they face</p> Signup and view all the answers

    What does the budget constraint help to identify?

    <p>Combinations of goods and services the consumer can afford with a limited budget, at given prices</p> Signup and view all the answers

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