A Person Goes into a Store and Buys a Computer

question 95

Multiple Choice

A person goes into a store and buys a computer for $1,210.In this case,price is acting as a

• A) resource.
• B) good.
• C) rationing device.
• D) capital instrument.
• E) factor of production.

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Definitions:

Compounded

The process by which an investment grows over time as earnings are reinvested to generate additional earnings, known as compound interest.

Interest Payment

The amount paid by a borrower to a lender as compensation for the use of borrowed money, often expressed as a percentage of the principal.

Interest Rate

The lending charge, expressed as a fraction of the original amount, that a borrower is assessed by a lender for asset use.

Annuity Due

A type of annuity payment where payments are made at the beginning of each period, as opposed to the end.