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

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.

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marvineetesh3 marvineetesh3 · Answer 2 · 2022-02-08T14:31:38+01:00

The individuals make choices that are directly inside the budget constraint, because he/she wants to save money and makes decisions which are inside the budget.

What is budget?

A budget refers to the financial plan for a settled period, frequently one year. It may also consider planned sales volumes and revenues, resource quantities, costs and expenses, and cash flows.

A budget is an idea of revenue and expenses over a specified future period of time and to utilize the money as per the plan of the budgets.

Example:

A family saved a money, or we can say that they form a budget for the expenses and also for the revenue, is the best example of the budget.

Therefore, individual make choices which are directly related to inside the budget constraints.

Learn more about budget, refer:

https://brainly.com/question/15712390