- 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 theoretical separation of nominal and real variables
goods that are excludable but not rival in consumption
balances in bank accounts that depositors can access on demand by writing a check
diminishing marginal product
the property whereby the marginal product of an input declines as the quantity of the input increases
the study of how society manages its scarce resources
the property of a good whereby a person can be prevented from using it
the setting of the level of government spending and taxation by government policymakers
a good for which an increase in the price raises the quantity demanded
the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve
the political philosophy according to which the government should punish crimes and enforce voluntary agreements but not redistribute income
a small incremental adjustment to a plan of action
marginal product of labor
the increase in the amount of output from an additional unit of labor
a situation in which a market left on its own fails to allocate resources efficiently
the study of how households and firms make decisions and how they interact in markets
negative income tax
a tax system that collects revenue from high-income households and gives subsidies to lowincome households
two goods with right-angle indifference curves
a person for whom another person, called the agent, is performing some act
government policy aimed at protecting people against the risk of adverse events
the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution
the price of a good that prevails in the world market for that good