Which of the following statements is necessarily true regarding a point along a budget line?
A)It implies an individual has spent her entire income.
B)It implies an individual is as happy as possible given her income.
C)It implies an individual no longer faces tradeoffs between both goods.
D)It implies an individual would be better off consuming a different bundle of goods.

Question

Which of the following statements is necessarily true regarding a point along a budget line?​
A)​It implies an individual has spent her entire income.
B)​It implies an individual is as happy as possible given her income.
C)​It implies an individual no longer faces tradeoffs between both goods.
D)​It implies an individual would be better off consuming a different bundle of goods.

Quizplus · Accepted Answer

A point along a budget line represents a combination of goods that exactly exhausts an individual's income, meaning they have spent their entire income.

Which of the Following Statements Is Necessarily True Regarding a Point