Valid Reasons for Using Credit Include All of the Following

question 112

Multiple Choice

Valid reasons for using credit include all of the following except

• A)medical emergency
• B)acquiring a car to return to the workforce
• C)borrowing for a higher education
• D)borrow for everyday living expenses
• E)buying an item now will cost less than in the future

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Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the activity or production level of a business.

Output

The total amount of goods or services produced by a company or economy in a given period.