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:

Computer Chips

Small electronic components made of semiconductor material, used to perform computing tasks and store data in various electronic devices.

Supply Curve

A graph showing the relationship between the price of a good and the quantity supplied, typically illustrating that as the price increases, the quantity supplied increases.

TV Technology

The set of technical aspects that make up the systems and devices for the transmission and reception of television signals, including both hardware and software innovations.

Crude Oil

An unprocessed, naturally found blend of hydrocarbon deposits and various organic substances, known as petroleum.