Why Does a Sports Car Cost More Than a Truck

question 93

Multiple Choice

Why does a sports car cost more than a truck?

• A) because sports car manufacturers are greedier than truck manufacturers
• B) because sports cars are priced higher in order to make them attractive as status symbols
• C) because more scarce resources are required to produce a sports car than to produce a truck
• D) because truck manufacturers know that their customers have relatively low incomes

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Definitions:

Equity Investments

Financial assets representing ownership interest in a company, including stocks, which provide dividends and potential capital gains.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Non-current Liability

A Non-current Liability is a financial obligation that a company does not expect to settle within the next twelve months from the reporting date.