Which of the following statements is true about the point where the budget line cuts the horizontal axis?     a) Returns the slope of the budget line.   B) It shows the marginal utility of the good on the horizontal axis.  C) When all of the income is spent on the good on the horizontal axis, it shows the amount that can be bought from this good.   D) It shows the rate of substitution between goods.    TO) It represents the bundle of goods that makes the marginal utility of income zero.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Which of the following statements is true about the point where the budget line cuts the horizontal axis? 

 
 a)

Returns the slope of the budget line. 

 B)

It shows the marginal utility of the good on the horizontal axis.

 C)

When all of the income is spent on the good on the horizontal axis, it shows the amount that can be bought from this good. 

 D)

It shows the rate of substitution between goods.  

 TO)

It represents the bundle of goods that makes the marginal utility of income zero. 

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