If You Have a Tendency to Write Checks for Amounts

question 37

Multiple Choice

If you have a tendency to write checks for amounts exceeding your checking balance,you need

• A)an unsecured credit line.
• B)an overdraft protection credit line.
• C)a secured credit card.
• D)a debit card.

---

Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced.

Perfectly Competitive

A market structure characterized by many buyers and sellers, identical products, and free entry and exit, leading to price determination by supply and demand.

Market Price

The ongoing value for buying or selling a product or service in the free market.

Shut Down

A short-term decision by a firm to cease production when marginal revenue does not cover variable costs, differing from going out of business, which is a long-term decision.