In Order to Get a Handle on Your Finances and Begin

question 71

Multiple Choice

In order to get a handle on your finances and begin to get out of debt,financial planners suggest you do the following for one week:

• A)pay only the minimum balance due on your credit cards.
• B)count up your ATM fees.
• C)cash your paycheck rather than putting it in the bank.
• D)sell your textbook.

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Definitions:

Identical Good

A product that is uniform in quality and features across different producers, making it indistinguishable between sources.

Marginal Cost

The charges incurred for the production of an additional unit of a good or service.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved due to market inefficiencies.

Consumer Surplus

The difference in planned versus actual spending by consumers on a good or service.