Which of the Following Is a Disadvantage of a Car

question 95

Multiple Choice

Which of the following is a disadvantage of a car lease?

• A) A large down payment is required.
• B) At the end of the lease, you have no ownership interest in the vehicle.
• C) The capitalized cost is usually lower than the list price.
• D) Monthly lease payments are usually lower than monthly financing payments.
• E) You can usually obtain a more expensive vehicle than with an outright purchase.

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Definitions:

Marginal Revenue Product

The additional revenue generated from utilizing one more unit of an input, like labor or capital.

Substitution Effect

The shift in consumer behavior toward different products as a result of changes in their relative costs, prompting the replacement of one item with another.

Output Effect

The impact on the economy when production increases, leading to a higher real GDP and potentially affecting employment and price levels.

Total Revenue Product

Total Revenue Product is the total revenue generated by a firm from selling its output, which is a key concept in understanding a firm's profitability.