Jan Has a Company Car for Both Business and Personal

question 4

Multiple Choice

Jan has a company car for both business and personal use.Which of the following statements is correct regarding the use of the car?

• A)The company can never deduct full depreciation on the car because Jan uses it for personal trips.
• B)The company only has to charge Jan 30 cents per mile for any of her personal mileage.
• C)If the car cost less than $15,000,the company does not have to charge Jan anything for her personal use.
• D)If Jan only uses the car for commuting to work,she has income equal to $1.50 per one-way trip.

Recognize the possibility of abnormal consumer responses to income and price changes, including Giffen goods and inferior goods.

Apply consumer choice theory to analyze real-world economic situations and experiments.

Understand the concept of consumer optimum and how it is determined by the intersection of budget constraints and indifference curves.

Calculate the optimum consumption bundle given a consumer's income and prices of goods.

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Definitions:

Enumerated List

An ordered listing of items or points, often numbered or bulleted.

Bulleted List

An itemized list used for organizing information efficiently, each entry preceded by a symbolic bullet.

Deductively Organized

An approach to organization that starts with a general assertion or hypothesis and then presents specific evidence or examples to support it.

Buffer

A temporary storage area where data is held while being transferred between two locations or processed.