In an Application for a Credit Card, a Potential Customer

question 42

Multiple Choice

In an application for a credit card, a potential customer is asked for his/her social security number.A social security number is an example of a:

• A)qualitative variable
• B)quantitative variable
• C)qualitative or quantitative variable, depending on when the number was issued
• D)ratio variable
• E)time series variable

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Definitions:

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually pay.

Excess Demand

A situation where the quantity demanded of a good exceeds the quantity supplied at the current price.

Compensating Variation

Compensating variation is an economic concept that measures the amount of money one would need to reach their original level of utility after a price change or economic policy impact.

Price Increase

A rise in the cost of a good or service.