Jackson Just Took Out a $1,000 Loan to Buy a 1979

question 66

Multiple Choice

Jackson just took out a $1,000 loan to buy a 1979 Corvette and he needs to travel to Vancouver this summer.He can either drive his car or take a bus.In order to make a rational decision,he decides to calculate the costs of driving the car on the trip.He estimates the cost of gas at 10 cents per kilometre,the car repair shop estimates maintenance at 3 cents per kilometre,his car insurance costs $600 for 6 months,and from a Web site,he determines that depreciation is about $1 per kilometre.
-Which of the above costs are sunk cost and,therefore,should NOT be included in his analysis?

• A) Maintenance,depreciation,insurance and loan payment costs.
• B) Maintenance,depreciation and insurance costs.
• C) Depreciation,insurance and loan payment costs.
• D) Insurance and loan payment costs.
• E) The cost of the car.

Comprehend the impact of cultural, subcultural, and consumer role differences on global marketing strategies.

Understand the importance and challenges of developing effective global partnerships and strategic alliances.

Appreciate the complexity of global distribution and pricing strategies.

Analyze the impact of sociocultural factors on international marketing beyond advertising.

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Definitions:

Government Budget Deficit

An economic condition occurring when government expenditures exceed its revenue in a fiscal period.

Interest Rate

The percentage charged or earned on a principal sum of money or an investment over a specified period of time.

Net Capital Outflow

The difference between the domestic purchases of foreign assets and the foreign purchases of domestic assets.

Exchange Rate

The rate at which one currency can be exchanged for another.