Introduction to Economics 1 Deneme Sınavı Sorusu #1225149

In a two good economy with goods X and Y and income level I, which of the following represents the equation for a budget constraint?


Px.Y + Py.X = I

Px.X + Py.Y = I

w.L+r.K=C

w.K+r.L=C

Y=C+I+G+NX


Yanıt Açıklaması:

Let’s consider the budget constraint facing an
individual who has a fixed level of income (I) that
can be used to buy two goods (X and Y) at fixed
prices (PX and Py). The budget constraint facing
this individual can be expressed as:
Px.X + Py.Y = I 

The answer is B.

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