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What Is the Difference Between a Budget Line and an Indifference

Question 13

Multiple Choice

What is the difference between a budget line and an indifference curve?


A) One is measured in dollars while the other in units of goods.
B) One shows what is possible while the other shows what is preferred.
C) One shows a positive relationship, and the other shows a negative relationship.
D) The budget line is bowed in toward the origin, and the indifference curves are linear.
E) There is no difference.

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