Which of the Following Is Not a Requirement of the Federal

question 64

Multiple Choice

Which of the following is not a requirement of the Federal Trade Commission's 1984 Used Motor Vehicle Registration Rule?

• A)A dealer must attach a buyer's guide label to any used car he or she is attempting to sell.
• B)The buyer's guide label must state that the car is being sold as is.
• C)The buyer's guide label must warn the customer that the seller is not guaranteeing anything at all about the performance of the car.
• D)The buyer's guide label must include a suggestion for the buyer to obtain an inspection of the used car before any decision to purchase.
• E)The buyer's guide label must include notice of a 30-day or 3,000-mile (whichever comes first)warranty on the car.

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Definitions:

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.

Optimal Quantity

The quantity that generates the highest possible total profit.

Economic Analysis

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective under the given assumptions and constraints.

Marginal Benefit

The additional benefit obtained from consuming one more unit of a product or service.