The limits imposed on household choices by income, wealth, and product prices are captured by the

budget constraint

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choice set.

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assumption of perfect knowledge.

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preference set.

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Solution

The correct option is A budget constraint
Budget constraint captures the limits imposed on household choices by income, wealth, and product prices.

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Similar questions

From the following data, calculate Personal Income and Personal Disposable Income.

		Rs (crore)
(a)	Net Domestic Product at factor cost	8,000
(b)	Net Factor Income from abroad	200
(c)	Undisbursed Profit	1,000
(d)	Corporate Tax	500
(e)	Interest Received by Households	1,500
(f)	Interest Paid by Households	1,200
(g)	Transfer Income	300
(h)	Personal Tax	500

500

500

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