Which of the Following Describes a Budget Line

A The prices of goods and b The consumers income to be spent on the goods. Which of the following statements best describes a consumers budget line.

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The indifference curve shifts to the right.

. Items are grouped by departments or costs to show which areas are using the bulk of the companys funds. 3 A households real income is the income expressed as a quantity of goods the household can afford to buy. Thus the two determinants of the budget line are.

We measure the quantity of good 1 on the horizontal axis and that of good 2 on the vertical axis. Line Item Budget Definition. We can depict the budget line by calculating the horizontal and vertical intercept.

It is an entirely different concept from that of an indifference curve though they are both are. Budget Line is a term or form of indication of consumers budget constraints which is used to describe several combinations of two commodities a consumer can buy considering both the prices of these commodities and a certain amount of income available to the consumer over a given period. The intercepts are the maximum of each good the consumer can afford to buy.

C the price of one good changes. Hence in this case Budget Line can be best described as a curve showing. D is affordable and because it is inside the budget line means that all the persons budget has been spent.

It is also important to remember that the slope of the budget line is equal to the ratio of the prices of two goods. October 19 2018 by Prachi M Leave a Comment. Consumer preference for inferior goods decreases.

So horizontal intercept MP 1 the consumer buys only. C shows that the consumer has chosen to spend all of his or her income on both products. BAn organized plan for spending money CA way to keep people from really enjoying life.

Which one of the following statement best describes what a budget is. C When the line item is part of budget activities 4 5 or 7. Who are the experts.

Figure 81 graphs a budget line. Budget line is a line showing different combinations of two goods which a consumer can attain at his given income and market price of the goods eg P xQ x P YQ y M. This can be proved with the aid of Fig.

The indifference curve shifts downward and to the left. Slope of the Budget Line and Prices of two Goods. In terms of soda is the households real income.

DA plan for saving money. A When the line item funding is 5 million or more in the budget year. D the price of both goods increase by the same percentageE None.

A curve showing various combinations of three or more products a consumer can purchase at different prices. AA method of figuring out the inflation rate. A budget line is the locu View the full answer Transcribed image text.

B When the line item covers advance procurement funds for a weapon system. ECON 1002 Microeconomics Unit 2 Milestone Click below link for Answer 1 Determine which statement below applies when income goes down. A It shows all combinations of goods among which the consumer is indifferent.

The amount of each good a consumer can purchase the limits to a consumers set of affordable consumption choices the desired level of consumption for the consumer O the set of all affordable. The equation of the budget line is therefore. 1 A consumption point inside the budget line A is unaffordable.

The formula for the budget line in this figure is. It helps the help managers to estimate whether the budget for the current year is. 5 Which one of the following best describes the conditions under which a P-40a budget exhibit is required to be submitted.

We review their content and use your feedback. A line item budget is a method used while creating and monitoring financial spending. Line Item Budget is the presentation of expenses in column format wherein such expenses are grouped according to its category like Advertisement Canteen Supplies Transportation reimburment etc and provide the time series comparison of year wise performance.

Which of the following describes a budget line. Bundles which cost exactly equal to consumers money income like combinations E to J lie on the budget line. P 1X 1 P 2X 2 M.

A curve showing various combinations of two products a consumer can purchase with a specific amount of income. A budget line is a straight line that slopes downwards and consists of all the possible combinations of the two goods which a consumer can buy at a given market price by allocating all hisher income. C It shows the desired level of consumption for the consumer.

Which of the following describes a budget line. Experts are tested by Chegg as specialists in their subject area. Budget line AB slopes downwards as more of one good can be bought by decreasing some units of the other good.

Which of the following describes what happens to a consumers budget line if that consumers budget increases. Which of the following statements best describes a consumers budget line. B shows that the consumer spends income on only one of the goods.

B It shows the limits to a consumers set of affordable consumption choices. Consumer preference for normal goods increases. D It shows the consumption choices made by a consumer.

It can shift to the right due to following reasons. Which of the following describes a budget line. The budget line shows the limits to a households con-sumption.

I got C what do you think. This question hasnt been solved yet Ask an expert Ask an expert Ask an expert done loading. B the consumers preferences change.

Correct Answer True Trade-offs arising from limited incomes give rise to Multiple choice question. Status report RACI Project schedule Risk register 2 Which of the following is the primary focus of scope monitoring. Project Management Sophia Milestone 3100 CORRECT.

Select the document below that could be used to monitor the progress of team members meeting deadlines for the completion of project deliverables. Important Points about Budget line Refer Fig. I When the level of income increases.

D 46 A budget line will shift outward and not change its slope ifA there is an increase in the consumers budget. A budget constraint is simply an illustration showing what can be purchased the trade-off between two goods given a fixed amount of income. The line items show specific financial data for accounting purposes but its typically only used for expense reporting.

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