INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 17

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-One condition of a secured credit card is that the holder must [pay a higher rate of interest | deposit an amount equal to the credit line in a savings account].

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Utility Function

A mathematical representation of how different combinations of goods or services can provide different levels of happiness or satisfaction to a consumer.

Indifference Curves

A graph that represents combinations of goods among which a consumer is indifferent, showing different levels of utility.

L-shaped

Often used to describe demand or recovery curves that have a rapid decline followed by a period of stagnation.

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to their levels of satisfaction.