All of the Following Situations Are Valid Reasons to Borrow

question 25

Multiple Choice

All of the following situations are valid reasons to borrow funds, except

• A) a medical emergency.
• B) a college education.
• C) purchasing a car in order to return to the workforce.
• D) borrowing for everyday living expenses.

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Definitions:

Long-Run Supply

The total quantity of goods or services that producers are willing and able to supply over a long period, considering all inputs and production costs are variable.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that suppliers are willing and able to sell, holding other factors constant.

Long Run

A period in economics in which all factors of production and costs are variable, allowing all inputs to be adjusted.