alleryStart learning →Economists analyse decisions about what to buy as choices made within certain:
ABudget constraints
BLegal restrictions
CCultural traditions
DPhysical distances
Answer & Solution
Correct answer: A. Budget constraints
1. Every purchase decision happens under a limit.
2. Economists believe that we can analyze individuals' decisions.
3. Those include what goods and services to buy.
4. They are choices we make within certain budget constraints.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 6 'Consumer Choices'_
Keep practising Consumer Choices
Browse all Consumer Choices questions for AP Microeconomics, or explore more Economics topics.
Related questions
Complete the consumer rulesWork the budget lineTrue or false: consumer choicesTap what belongs to each effectMatch each consumer choice termA price rise for a normal good makes both effects push consumption of that good in which dDiminishing marginal utility means the total utility from extra units continues to rise buConsumer equilibrium is found by comparing across goods the marginal utility: