According to economists, if policymakers are serious about reducing fuel consumption, they need to implement policies that make drivers think carefully about the costs and benefits of every mile driven, and the best way to accomplish this is by
A) increasing the gasoline tax.
B) raising mandatory fuel economy standards.
C) converting all roads to toll roads.
D) limiting the number of miles per year that each driver is allowed to drive.
A
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Which of the following is a problem with the price system that can lead to fluctuations in output?
A) The price system works silently in the background. B) Prices may be flexible. C) Prices can be slow to adjust. D) all of the above
When several resources are combined in the production of a good,
a. it is easy to determine the marginal products of the various resources b. the marginal contribution of each input often cannot be observed c. allocating revenue among the various resources is easy d. there is more competition for each of the resources used e. there is less competition for each of the resources used
If an economy keeps increasing its capital stock, then over time its production possibilities curve will
a. remain unchanged but more capital goods will be produced b. shift outward c. shift inward d. disappear because scarcity will eventually be overcome e. remain unchanged, but production will occur outside (exterior to) the curve
How much does quantity change if MC1 shifts to MC2?
A. Slightly less than one
B. About one
C. Slightly more than one
D. Not at all