6-51 as of 2009,which of the Following Is True Concerning

question 24

Multiple Choice

6-51 As of 2009,which of the following is true concerning payday lending?

• A)The typical borrower earns less than $25,000.
• B)Payday lending has been effectively banned in 12 states.
• C)Interest rate on payday loans were capped at an annual interest rate of 30% by federal legislation.
• D)Less than $30 billion of payday loans were generated by the industry.
• E)Payday lenders were banned from forming relationships with nationally chartered banks.

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Definitions:

AFC Curve

The Average Fixed Cost curve, which represents the fixed costs of production divided by the quantity of output produced, typically demonstrating a downward slope as output increases.

ATC Curve

In economics, the Average Total Cost curve is a graphical representation that shows the per-unit cost of production (total cost divided by the quantity produced) at different levels of output.

ATC Curve

The ATC Curve, or Average Total Cost curve, represents the average cost per unit of output, calculated by dividing total cost by the quantity of output produced.

AVC Curve

Short for average variable cost curve, it represents the variable cost per unit of output.