A New Car Dealer Can Offer a Reduction in the List

question 62

Multiple Choice

A new car dealer can offer a reduction in the list price of a new Ford pickup truck by offering you a __________ of $1,000 for your 1998 Nissan.

• A)cash discount
• B)functional discount
• C)seasonal discount
• D)trade-in allowance
• E)promotional allowance

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Definitions:

Efficiency

Efficiency in economics means the optimal allocation of scarce resources to meet the desired objectives, minimizing waste and maximizing value.

Economy

A broad term that encompasses all activities related to the production, consumption, and trade of goods and services in an area or country.

Partial Equilibrium

A concept in economic analysis that examines the equilibrium condition in a single market or sector without considering interactions with other markets or sectors.

Technological Advance

The improvement or development of new methods, devices, or materials that increase efficiency and productivity.