Which of the Following Statements Is True for Gift Cards

question 14

Multiple Choice

Which of the following statements is true for gift cards?

• A) The cards are subject to Truth in Lending Act (TILA) regulations.
• B) Recipients have two years to use the cards.
• C) A fee can only be assessed if the card has not been used within six months.
• D) A fee can only be assessed on the card if a customer is first notified of the fees.

Comprehend the role and minimum points of average total cost (ATC) and average variable cost (AVC) curves in a firm's production decisions.

Identify the condition under which a firm should continue to operate or shut down in the short run based on price and cost analysis.

Understand the role of marginal cost in determining a perfectly competitive firm's short-run supply curve.

Recognize the short-run economic outcomes for a firm in a perfectly competitive market, including earning zero economic profit, making a loss, or earning a profit.

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Definitions:

1975 Mail-Order Rule

A regulation that requires companies to ship goods ordered by mail, phone, or online, within a promised timeframe or notify customers of delays.

Mail or Telephone Order Merchandise Rule

A Federal Trade Commission rule ensuring that companies ship orders made by mail, phone, or online in a timely manner, or provide timely notice of delays and offer the option of a refund.

Complete Package

Typically describes a product or offer that includes all necessary components or features as a single, comprehensive unit.

Federal Law

Legislation enacted by the national government of a country that applies to all of its citizens and entities.