Critical Thinking Questions Case 2-1

question 184

Multiple Choice

Critical Thinking Questions
Case 2-1
You are taking an economics class, as part of which you are studying the various types of e-commerce.
-As part of your research, you have learned that vending machines in Japan allow shoppers to hold their cell phones in front of the machine in order to make a purchase using the smartphone. Which of the following types of commerce does this exemplify?

• A) C2C
• B) B2B
• C) m-commerce
• D) C2B

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Definitions:

Loanable Funds

The money available for borrowing, influenced by savings and investments, within an economy.

Interest Rates

A financial charge, calculated as a portion of the principal, assessed by a lender against a borrower for the loan of money or assets.

Marginal Extraction Cost

The additional cost associated with extracting one more unit of a resource, considering factors like difficulty of extraction and resource depletion.

Discount Rate

The interest rate that an eligible depository institution is charged to borrow short-term funds directly from a central bank.