________ Describes the Short-Term Financing Available to Firms That Buy

question 51

Multiple Choice

________ describes the short-term financing available to firms that buy merchandise from their suppliers and are not required to pay for their purchase until some future date.

• A)Secured credit
• B)Trade credit
• C)Revolving credit
• D)Factoring

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Definitions:

Consumption

The consumption of products and services by individuals in a household.

Impossibility Theorem

A proposition demonstrated by Kenneth Arrow showing that no system of aggregating individual preferences into social decisions will always yield consistent, nonarbitrary results.

Voting Paradox

A simple demonstration of how majority-rule voting can lead to seemingly contradictory and inconsistent results. A commonly cited illustration of the kind of inconsistency described in the impossibility theorem.

Social Choice

The problem of deciding what society wants. The process of adding up individual preferences to make a choice for society as a whole.