What Is Not a Correct Statement Concerning the Fair Debt

question 35

Multiple Choice

What is not a correct statement concerning the Fair Debt Collection Practices Act?

• A) It prohibits improper practices in the collection of consumer debts.
• B) It applies to original creditors who are collecting from original debtors.
• C) The validity of the debt is not a defense.
• D) Violators are liable to debtors for damages.

---

Definitions:

Erode Producer Profits

The process by which factors such as increased competition or higher costs reduce the profits that producers can make.

Producer Surplus

The additional revenue producers earn by selling a product at a market price above their minimum acceptable price.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

Low Supplier Power

Refers to a market condition where suppliers have limited control over the price and terms of products and services due to high competition or low demand.