- 7.1: A fee called a(n) is assessed to customers who go over their credit...
- 7.2: Credit offers through individual stores, companies, or other mercha...
- 7.3: is the practice of buying first and thinking about it later
- 7.4: With a method of computing finance charges called the , charges and...
- 7.5: An interest rate that changes at the discretion of the creditor is ...
- 7.6: Property that can be used as security for a loan is called .
- 7.7: Money borrowed now with the agreement to pay it back later is called .
- 7.8: A partial refund of the purchase price of an item is a(n) .
- 7.9: An interest rate on credit that remains the same each month is call...
- 7.10: The use of electricity, water, and other utilities that you will pa...
- 7.11: A method of computing finance charges in which interest is calculat...
- 7.12: A type of credit in which you repay a fixed balance with periodic p...
- 7.13: With the type of credit called , you make payments and continue cha...
- 7.14: The maximum amount you are willing to spend for an item is called y...
- 7.15: Standards or features used to judge an item you want to purchase ar...
- 7.16: A fee charged for violating a credit agreement is called a(n) .
- 7.17: A method of computing finance charges in which interest is calculat...
- 7.18: A preapproved amount that can be borrowed is a(n) .
Solutions for Chapter 7: Buying Decisions
Full solutions for Personal Financial Literacy | 1st Edition
total revenue divided by the quantity sold
fluctuations in economic activity, such as employment and production
goods that are excludable but not rival in consumption
the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases
the property of distributing economic prosperity uniformly among the members of society
input costs that require an outlay of money by the firm
the uncompensated impact of one person’s actions on the wellbeing of a bystander
federal funds rate
the interest rate at which banks make overnight loans to one another
the amount of money in the future that an amount of money today will yield, given prevailing interest rates
income elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income
the total number of workers, including both the employed and the unemployed
law of supply and demand
the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance
a group of buyers and sellers of a particular good or service
the proposition that changes in the money supply do not affect real variables
producer price index
a measure of the cost of a basket of goods and services bought by firms
an action taken by an uninformed party to induce an informed party to reveal information
an action taken by an informed party to reveal private information to an uninformed party
two goods for which an increase in the price of one leads to an increase in the demand for the other
unit of account
the yardstick people use to post prices and record debts
the price of a good that prevails in the world market for that good