When Many People Are Involved and When They Do Not

question 109

Multiple Choice

When many people are involved and when they do not all agree about whether one good really is better than another, the best final equilibrium is usually determined by:

• A) consumers.
• B) the market.
• C) the government.
• D) historical accidents.

---

Definitions:

Collection Fee

A charge assessed for the service of collecting delinquent payments on loans or bills.

Credit Card Sales

Credit card sales refer to transactions in which goods or services are purchased by customers using credit cards as the method of payment.

Cash Equivalents

Short-term, highly liquid investments with original maturities of three months or less, easily convertible into a known amount of cash.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing inventory and accounts receivable.