Assertion (A): A budget line slopes downward.
Reason (R): With a fixed income, buying more of one good means buying less of the other.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true.
The trade-off R describes is what gives the line its negative slope, so R explains A.

Concept: Why the budget line slopes down
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsBudget set and budget line

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Ten questions from Budget Line & Optimal Choice, at your own pace.

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Ten questions from Budget Line & Optimal Choice, at your own pace.

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Assertion (A): A budget line slopes downward.Reason (R): With a fixed income, buying more of one good means buying less of the other.

Explanation

Assertion (A): A budget line slopes downward.
Reason (R): With a fixed income, buying more of one good means buying less of the other.