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Points on a budget constraint all share which property?
ATotal cost is exactly zero
BTotal cost equals the budget
CTotal cost is below budget
DTotal cost is above budget
Answer & Solution
Correct answer: B. Total cost equals the budget
1. The line marks the boundary of what is affordable.
2. Each point on the budget constraint represents a combination of goods whose total cost adds up to the budget.
3. In the worked example that budget is 10 dollars.
4. Spending less would place the choice inside the line rather than on it.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 2 'Choice in a World of Scarcity', sections 2.1-2.3_
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