A Consumer Is Trying to Decide Whether to Purchase Car

question 109

Multiple Choice

A consumer is trying to decide whether to purchase car A or car B. Car A costs $10,000 and has an mpg rating of 30, and insurance is $500 per year. Car B costs $12,600 and has an mpg rating of 50, and insurance is $550 per year. Assume that the consumer drives 15,000 miles per year and that the price of gas remains constant at $1.25 per gallon. Based only on these facts, determine how long it will take for the total cost of car B to become less than that of car A.

• A)13 years
• B)17 years
• C)47 years
• D)57 years
• E)15 years

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Definitions:

Time-And-Motion Studies

The analysis of work processes to improve efficiency by reducing wasted motions and optimizing task performance.

Knowledge-Driven Economy

An economy where growth is primarily based on the production, distribution, and use of knowledge and information.

Personality-Related Position

A job role that is aligned with the personality traits of the individual, enhancing job satisfaction and performance.

Work Ethic

A set of values based on the moral virtues of hard work and diligence, often emphasizing responsibility, integrity, and discipline on the job.