A point lying inside the budget line indicates: An unattainable market basket for the consumer. the consumer is not spending all of his or her income. the consumer has exhausted his income on consumption. that one of the goods consumed is an economic bad.

A point lying inside the budget line indicates: An unattainable market basket for the consumer. the consumer is not spending all of his or her income. the consumer has exhausted his income on consumption. that one of the goods consumed is an economic bad.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 1QR

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Question

9 A point lying inside the budget line indicates:

An unattainable market basket for the consumer.
the consumer is not spending all of his or her income.
the consumer has exhausted his income on consumption.
that one of the goods consumed is an economic bad.

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10) A consumption points inside the budget line A) is unaffordable. B) shows that the consumer spends income on only one of the goods. C) shows that the consumer has chosen to spend all of his or her income on both products. D) is possible to afford but has some unspent income.
21. The budget constraint:(a) Represents the set of all baskets the consumer can afford(b) Represents the set of all baskets the consumer can afford while spending all availableincome(c) Represents the set of all baskets that give the consumer the same level of utility whileholding spending constant(d) Represents the set of all baskets in which the consumer purchases only one of the goods
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