- 8.3.1: Explain why using credit may tie up future income
- 8.3.2: Explain how your credit history relates to the interest rate you ma...
- 8.3.3: Why should you consider the economy when planning credit purchases?
- 8.3.4: List the terms typically included in a credit offer.
- 8.3.5: Why is it important for you to be able to cancel a credit card when...
- 8.3.6: List three ways you can reduce or avoid credit costs.
- 8.3.7: Describe one unethical loan practice.
Solutions for Chapter 8.3: Credit Tips
Full solutions for Personal Financial Literacy | 1st Edition
the proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own
the ability to produce a good at a lower opportunity cost than another producer
the property of a good whereby a person can be prevented from using it
federal funds rate
the interest rate at which banks make overnight loans to one another
the percentage change in the price index from the preceding period
the ratio of assets to bank capital
the regular pattern of income variation over a person’s life
a particular “game” between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
the amount a seller is paid for a good minus the seller’s cost of providing it
the quantity of goods and services produced from each unit of labor input
a tax for which highincome taxpayers pay a larger fraction of their income than do low-income taxpayers
real exchange rate
the rate at which a person can trade the goods and services of one country for the goods and services of another
a period of declining real incomes and rising unemployment
rivalry in consumption
the property of a good whereby one person’s use diminishes other people’s use
an action taken by an uninformed party to induce an informed party to reveal information
the manner in which the burden of a tax is shared among participants in a market
total revenue (for a firm)
the amount a firm receives for the sale of its output
the costs that parties incur in the process of agreeing to and following through on a bargain
government programs that supplement the incomes of the needy welfare economics the study of how the allocation of resources affects economic well-being
the study of how the allocation of resources affects economic well-being