When Using Credit to Make Purchases, Consumers Are

question 154

Multiple Choice

When using credit to make purchases, consumers are

• A) decreasing current buying power and increasing future buying power.
• B) increasing their present discretionary income to extend purchasing power.
• C) putting themselves at significant risk of financial disaster.
• D) forgoing the accumulation of wealth to increase current income.
• E) increasing current buying power at the expense of future buying power.

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Definitions:

Political Issues

Challenges and factors related to government policies, regulations, or political stability that can affect business operations.

Ethical Issues

Moral problems or dilemmas that arise in the context of professional practices or business operations, often requiring careful thought or action.

Price Skimming

A pricing strategy where a seller charges a relatively high price for a product at first, then lowers the price over time.

Customer Behaviour

Patterns and tendencies among consumers that influence their purchasing decisions and interactions with brands.