Debit Cards Can Be Expensive to Use Because

question 6

Multiple Choice

Debit cards can be expensive to use because:

• A)they can cause you to overdraft your checking account and consequently incur an overdraft fee.
• B)the finance charge on debit cards is higher than on credit cards.
• C)the annual fee for these cards is higher than for credit cards.
• D)merchants charge a fee when you use them.

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Definitions:

Total Utility

The sum satisfaction or benefit that a consumer receives from consuming a particular quantity of goods or services.

Consumer Surplus

The variance between the aggregate sum consumers are prepared and able to spend on a good or service versus what they truly pay.

Consumer Surplus

The divergence between the full amount consumers intend and are able to allocate for a good or service, and the amount they really pay.

Total Utility

The complete fulfillment derived from the consumption of a specific amount of products or services.