Credit Cards Are

question 166

Multiple Choice

Credit cards are

• A) a part of money because they are used in so many transactions.
• B) a part of money when the transaction approach is used but not when the liquidity approach is used.
• C) not part of money because they represent a loan of money to the user.
• D) not part of money because the government has no control over the amount of credit outstanding.

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Definitions:

Excess Capacity

A situation in which a firm is producing at a lower level of output than it has the potential to produce due to lack of demand.

Welfare-Maximizing

An economic or policy goal aimed at achieving the highest possible level of welfare for the population, taking into account factors such as distribution of wealth, health, and overall quality of life.

Competitively

Refers to a market condition where businesses or individuals vie against each other to gain economic advantage or win consumers' favor.

Profit-Maximizes

Refers to the strategy or objective of an entity or individual aimed at achieving the highest possible profit from its operations, typically by managing costs, pricing, and output.