The difference in the market value of a new car and the market value of the same car one year later is
A)economic depreciation.
B)physical depreciation.
C)economic deterioration.
D)physical deterioration.
E)conventional depreciation.

Question

Quizplus · Accepted Answer

The difference in market value of a new car and the market value of the same car one year later is known as economic depreciation, as it is caused by factors such as wear and tear, changes in technology or consumer preference, and other economic factors. Physical depreciation and deterioration refer to the actual physical wear and tear of the car, while conventional depreciation is a term used interchangeably with economic depreciation.

The Difference in the Market Value of a New Car