Which of the following is true regarding a budget constraint?Question 15Select one:a.The budget constraint indicates that consumers desire more income.b.The budget constraint indicates that there are limits on the consumption possibilities for a consumer.c.The budget constraint is based on some, but not all of the prices for goods that consumers may want to buy.d.All of the above statements describe the budget constraint.

Consumers must forgo certain goods and services based on a limited budget because Blank______.Multiple choice question.a consumer's limited budget is constrained by the resources used to produce goods or servicesa consumer's limited budget is constrained by the availability of goods or servicesa consumer's limited budget is constrained by the demand for goods or servicesa consumer spends his or her limited budget purchasing a combination of goods and services that maximize his or her satisfaction

What does a consumer's budget constraint represent? The consumer's income The consumer's preferred consumption bundles The consumer's feasible consumption bundles The consumer's optimal consumption bundle

What is the 'consumer's budget constraint' in economic theory? It is the boundary of the feasible set of bundles the consumer can afford. It is the maximum amount a consumer is willing to pay for a good. It is the minimum level of satisfaction a consumer aims to achieve. It is the limit to the number of goods a consumer can consume.

44. Which of the following statements is true? a. A fixed budget is a budget that remains the same from one accounting period to the b. next c. A fixed budget is produced for one product for different levels of activity d. A fixed budget is useful when comparing budget figures with actual figures 45 Which of the following is an NOT an advantage of top‐down budgeting? a. It is less time consuming b. It reduces budgetary slack c. It is more likely to motivate managers d. Budgets will be closer to the company’s objectives 46 Which of the following is a disadvantage of participation in standard setting? a. Morale and performance are suppressed b. Staff may try to incorporate budget padding c. Decision making will not improve d. Budget requirements are not clearly communicated to staff 47 Which of the following are elements of a mission statement? (i) Purpose (ii) Strategy (iii) Values (iv) Culture a. All of them b. (i) and (ii) only c. (ii) only d. (ii) and (iv) only 48 Which of the following measures would not be appropriate for a cost center?. Cost per unit b. Contribution per unit c. Comparison of actual labor cost to budget labor cost d. Under or over absorption of overheads 49 Which of the following techniques would be useful for controlling costs? (i) Actual versus flexed budget (ii) Variance analysis (iii) Trend of costs analysis a. (i) and (ii) only b. (i) and (iii) only c. (ii) and (iii) only d. (i), (ii) and (iii) 50. Which of the following are primary data? (i) Information on timesheets used for making up wages (ii) Information from a government publication concerning forecast inflation rates used for budgeting (iii) Information from a trade publication used to choose a supplier of raw materials a. (i) and (ii) b. (i) and (iii) c. (i) only d. (i), (ii) and (iii) 51. Which of the following terms would not normally be used to describe a relevant cost for a decision? a. Incremental b. Future c. Material d. sunk cost 52.What is the name given to a budget which has been prepared by building on a previous period’s budgeted or actual figures? a. Incremental budget b. Flexible budget c. Zero based budget d. functional budget

7. (a) What is a budget line? What does the point on it indicate in terms of prices?(b) A consumer consumes only two goods X and Y. Her money income is 24 and the prices of Goods Xand Y are *4 and 2 respectively. Answer the following questions:(i) Can the consumer afford a bundle 4X and 5Y? Explain.(ii) What will be the MRS, when consumer is in equilibrium? Explain.XY