Which of the Following Items Would a Personal Loan Be

question 88

Multiple Choice

Which of the following items would a personal loan be a better option than a credit card for a college student?

• A)Car maintenance expense
• B)Tuition and dorm fees
• C)Trips home for the holidays
• D)Tickets to sporting events

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Definitions:

Productive Efficiency

A situation where goods and services are produced at the lowest possible cost and resources are utilized most effectively.

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences and in a way that maximizes social welfare.

Marginal Cost

The uptick in cost associated with producing an extra unit of a product or service.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a benefit to consumers exactly equal to the cost of producing it.