Which of the Following Statements Is NOT True

question 28

Multiple Choice

Which of the following statements is NOT true?

• A)Credit bureaus may not report information more than one year old.
• B)A creditor may not use receipt of public assistance as a factor in determining creditworthiness.
• C) If there is a billing dispute, creditors may not take adverse action until the dispute is resolved.
• D) Bill collectors may not call debtors at odd hours.

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Definitions:

Socially Optimal

A state in which resources are allocated in the most efficient way from a societal perspective, maximising collective welfare or benefit.

Pigovian Tax

A tax or charge levied on the production of a product that generates negative externalities. If set correctly, the tax will precisely offset the overallocation (overproduction) generated by the negative externality.

Clean Up

The process of removing contaminants, waste, or undesirable items from an area, thus restoring it to its original or acceptable condition.

Moral Hazard

The situation where one party takes on risk because they know that another party will bear the consequences.