________ Float Results from the Lapse Between the Time When

question 149

Multiple Choice

________ float results from the lapse between the time when a firm deducts a payment from its checking account ledger and the time when funds are actually withdrawn from its account.

• A) Mail
• B) Processing
• C) Collection
• D) Disbursement

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Definitions:

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is distributed to yield the highest aggregate utility.

Willingness To Pay

The maximum amount a consumer is prepared to spend to acquire a good or service.

Acceptable Price

The price at which consumers feel they are getting good value for the products or services purchased.

Allocative Efficiency

A state of resource distribution where it is impossible to make any one individual better off without making someone else worse off, maximizing social welfare.