Economics 9708 · AS & A Level · Economic methodology

Economic methodology — practice question

Which of the statements 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.

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