Which Method of Payment Is Likely to Be the Least

question 21

Multiple Choice

Which method of payment is likely to be the least expensive in the long run?

• A)bank credit card
• B)check written on a home equity line of credit
• C)cash
• D)store credit card
• E)cash advance on a Visa credit card

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Definitions:

Scarcity

The basic economic issue arises from the infinite human desires facing a scarcity of resources in the world.

Limited Resources

The finite availability of resources such as time, money, and materials, which necessitates choices about their allocation.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Resources Are Limited

A principle stating that the availability of physical, natural, and human resources is finite, necessitating choices and trade-offs.