You Purchase a New Car After Graduating from College

question 12

Multiple Choice

You purchase a new car after graduating from college. Each year the assessed value of the car decreases by 6%. After five years, what is the total percentage decrease on the value of the car? Give
Your answer as a percentage rounded to the nearest tenth of a percent.

• A) 25.0%
• B) 26.6%
• C) 30.0%
• D) 33.4%
• E) None of the above.

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Definitions:

Pure Competition

Market structure, in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business venture in order to bring new products or services to the market.

Resource Allocations

The process of assigning and distributing available resources, such as time, money, and manpower, among various projects or departments to achieve organizational goals.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.