Advantages of Using Credit Are All of the Following, Except

question 4

Multiple Choice

Advantages of using credit are all of the following, except

• A) the ability to cover cash flow shortages.
• B) increases the number of checks written.
• C) the ability to buy large items earlier.
• D) convenience in making day-to-day transactions.

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Definitions:

Economic Profits

The total revenue of a business minus its explicit and implicit costs; a measure of incremental gain over the total costs, including opportunity costs.

Supply Curve

A graph showing the relationship between the price of a good and the quantity supplied by producers.

Long-run Equilibrium

A state in which all factors of production and outputs are variable, allowing for the adjustment of all inputs, leading to a balanced economic condition over time.

Zero Economic Profits

Occurs when a firm earns just enough revenue to cover its total costs, including opportunity costs, but no more.