Which of the Following Statements Is True of Retail Charge

question 92

Multiple Choice

Which of the following statements is true of retail charge cards?

• A)Retail charge cards are issued by retailers that allow customers to charge goods and services up to a preestablished amount.
• B)Retail charge cards work exactly like debit cards and provide direct access to the checking accounts of consumers.
• C)Retail charge cards are issued in conjunction with some charitable,political,or other nonprofit organization.
• D)Retail charge cards are secured with some form of collateral,such as a bank CD.
• E)Retail charge cards provide incentives,such as cash,merchandise rebates,airline tickets,or even investments to the users.

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Definitions:

Constant Returns to Scale

The condition where increasing all inputs by a certain factor leads to an increase in output by the same factor, indicating linear scalability in production processes.

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Specialization of Labor

The division of labor where individuals or groups focus on specific tasks or jobs, increasing efficiency and productivity.

Diminishing Marginal Returns

Diminishing marginal returns occur when the increase in output from adding an additional unit of input decreases, holding all other inputs constant.