Economics (AS & A Level) · Oct / Nov 2022 · Paper 31 · Question 5
9708Indifference curves and budget lines
Which statement is correct?
- AA budget line shows the combinations of two goods which can be bought with a given income.
- BA budget line shows the combinations of two goods which a consumer wants to buy.
- CA budget line shows the difference between income and expenditure.
- DA budget line shows the maximum potential output of two goods with given resources.
As printed in the paper
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Correct answer: A. A budget line shows the combinations of two goods which can be bought with a given income.
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