Post Utme Esut 2018 Commerce Question 10

Practice objective / multiple choice question 10 from the 2018 Post Utme Esut Commerce examination.

Post Utme Esut 2018 Commerce Objective / Multiple Choice

Question 10 POST_UTME_ESUT • 2018 • COMMERCE • objective

A consumer's budget constraint is a horizontal line because the consumer has a fixed income that can be spent on any combination of goods. Explain why this is the case.

Correct Answer A. Because the consumer's income is fixed and can be spent on any combination of goods.

B. Because the consumer's income is variable and can be spent on any combination of goods.

C. Because the consumer's income is fixed and can only be spent on one good.

D. Because the consumer's income is variable and can only be spent on one good.

Correct Answer

Correct Option:

Because the consumer's income is fixed and can be spent on any combination of goods.

This is Post Utme Esut 2018 Commerce Question 10. It is one of the objective questions from the 2018 Post Utme Esut Commerce examination.

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