A Debit Card

question 2

Multiple Choice

A debit card:

• A)immediately deducts the cost of your purchase from your bank account.
• B)credits your account at the moment you buy goods or services.
• C)is a new type of a credit card issued by VISA International.
• D)is another name for a travel and entertainment card.
• E)typically has a credit limit of $1,000.

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Definitions:

Average Total Cost

The total cost of production divided by the number of goods produced, indicating the cost on average of producing each unit of output.

Marginal Revenue

The plus income from the sale of one more unit of a good or service.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can dictate prices or terms, leading to an efficient allocation of resources.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a stable market condition.