The Decision About Whether or Not to Grant You Credit

question 24

Multiple Choice

The decision about whether or not to grant you credit will be made by:

• A)individual creditors.
• B)local credit bureaus.
• C)the credit cardholder.
• D)the Federal Trade Commission.
• E)national credit bureaus.

---

Definitions:

Regulation Dilemma

The challenge of finding the balance between necessary government intervention in markets to correct failures and excessive regulation that may stifle competition and innovation.

Economic Profits

The excess of total revenues over the total costs, including both explicit and implicit costs, indicating the profitability beyond the normal return of investments.

Natural Monopoly

A market condition where a single supplier can provide a product or service at a lower cost than any potential competitor, often due to economies of scale.

Average Total Cost

The total cost of production divided by the quantity produced, representing the average cost per unit of output.