While an Electronic Funds Transfer Represents a Faster and More

question 304

True/False

While an electronic funds transfer represents a faster and more flexible method of making payments than writing checks, it is more expensive for banks.

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Definitions:

Average Product

The output per unit of a particular input, such as labor or capital.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another.

Wage Increase

An upward adjustment in the salary or earnings paid to an employee.

Utility Maximizing

Acting in a way to achieve the highest level of satisfaction possible with available resources.