Which of the Following Is Most Likely Not a Valid

question 98

Multiple Choice

Which of the following is most likely not a valid reason for using credit?

• A)Borrowing for an emergency stay in a hospital
• B)Borrowing to purchase a car so that a homemaker can return to the workforce
• C)Borrowing to buy a printer for your home office now because you know it will be twice as expensive later
• D)Borrowing to pay for your expensive dinner and movie every week
• E)Borrowing to pay for a college education

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Definitions:

Price Elasticity

The impact of price adjustments on the quantity of a good demanded measured.

Total Expenditures

The total amount of money spent by individuals or firms on goods and services within a specific period.

Price Elasticity

A measure in economics that shows how the quantity demanded of a good or service responds to a change in its price.

Total Expenditures

The sum of all spending by consumers, businesses, and the government in an economy.