Suppose You Use Your Debit Card to Buy Soda from a Soda

question 175

Multiple Choice

Suppose you use your debit card to buy soda from a soda machine.Which of the following is true regarding the transaction?

• A)The debit card is not money;it's only an instruction to make a loan.
• B)The debit card is money;your use reflects the exchange of a good.
• C)The debit card is not money;its use is only a tool to cause money to move from your account.
• D)Your use makes the debit card money,as funds are transferred between your account and the machine owner.
• E)Using the debit card is like using a check and is,therefore,money.

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Definitions:

Total Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Area Under

Refers to the space beneath the curve of a graph in mathematics and statistics, often used to calculate integrals.

Average Cost

The total cost of production divided by the total quantity produced, indicating the cost per unit of output.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.