CSS 2024 Economics — MCQs

Which of the following is an INCORRECT statement about a budget constraint?

• APoints on a budget constraint represent combinations of the goods that exactly use up income
• BPoints within the budget constraint represent combinations of the goods that do not use up all the income.
• CIf points A and B lie on the budget constraint, we can deduce that people will be indifferent between the two
• DIf the price of one good decreases, all else the same, the budget constraint will swivel or rotate outward