Explain why individuals make choices that are directly on the budget constraint, rather than inside the budget constraint or outside it.

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Social Studies

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7 May, 19:11

Explain why individuals make choices that are directly on the budget constraint, rather than inside the budget constraint or outside it.

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Laurel Jordan · Answer 1

Individuals that make choices inside the budget constraint, allow them to save, but spending directly from the budget is what people do. Basically they will get the most use out of their income. If they maximize money, will maximy utility too.