Which of the Following Is Most Likely Not a Valid

question 167

Multiple Choice

Which of the following is most likely not a valid reason for using credit?

• A)borrowing for a stay in a hospital because of appendicitis.
• B)borrowing to purchase a car so that you can go to work full-time.
• C)borrowing to buy a printer for your home office now because you know it will be twice as expensive in two years.
• D)borrowing to pay for your expensive dinner and movie every week.
• E)all of the above are valid reasons for using credit.

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Definitions:

Artificially Scarce

A situation where the supply of a good is limited by factors other than its physical scarcity, often due to regulatory or monopolistic practices.

Excludable

Referring to a good, describes the case in which the supplier can prevent those who do not pay from consuming the good.

Nonrival

A property of a good or service where its consumption by one individual does not reduce availability for others, often found in public goods.

Private Good

A good that is both excludable and rivalrous, meaning it can only be used by one person at a time, and access to it can be restricted.