The alternative combinations of two goods that a consumer can purchase with a given money income is:
A) a production possibilities curve.
B) a demand curve.
C) consumer equilibrium.
D) a budget line.

Question

Quizplus · Accepted Answer

The budget line shows the alternative combinations of two goods that a consumer can purchase with a given money income. This line represents all the possible combinations of two goods that a consumer can buy with a fixed amount of income. Thus, D is the correct choice. A represents the alternative combinations of two goods that a producer can produce with a given set of resources. B represents the relationship between the price of a good and the quantity demanded of that good. C represents the combination of two goods that maximizes a consumer's satisfaction or utility.

The Alternative Combinations of Two Goods That a Consumer Can