- 7-2.1: What is the purpose of using credit?
- 7-2.2: List several sources of consumer credit
- 7-2.3: What types of information are asked for on a typical credit applica...
- 7-2.4: How are store credit accounts different from bank credit card accou...
- 7-2.5: How are credit cards different from charge cards?
- 7-2.6: How is a single payment similar to an installment loan? How is it d...
- 7-2.7: Give two examples of collateral that might be used to secure a loan.
- 7-2.8: What is the responsibility of a cosigner of a loan?
- 7-2.9: How is a line of credit different from other types of loans?
- 7-2.10: List several benefits of using credit.
Solutions for Chapter 7-2: Sources and Benefits of Credit
Full solutions for Personal Financial Literacy | 1st Edition
total revenue divided by the quantity sold
an excess of government receipts over government spending
the fall in total surplus that results from a market distortion, such as a tax
the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases
a situation in which the market price has reached the level at which quantity supplied equals quantity demanded
the uncompensated impact of one person’s actions on the well-being of a bystander
the setting of the level of government spending and taxation by government policymakers
a banking system in which banks hold only a fraction of deposits as reserves
something that induces a person to act
a good for which, other things being equal, an increase in income leads to a decrease in demand
the revenue the government raises by creating money
a tax that is the same amount for every person
isk that affects all companies in the stock market
the study of how households and firms make decisions and how they interact in markets
the production of goods and services valued at current prices
a person for whom another person, called the agent, is performing some act
a tax for which highincome and low-income taxpayers pay the same fraction of income
goods that are neither excludable nor rival in consumption
the amount of a good that buyers are willing and able to purchase
an action taken by an informed party to reveal private information to an uninformed party