Which of the Following Is NOT an Example of a Way

question 72

Multiple Choice

Which of the following is NOT an example of a way in which microeconomic analysis can help in designing environmental policy?

• A) Determining the optimal level of vehicle fuel efficiency standards
• B) Designing laws to provide incentives for firms to implement clean technologies in new vehicles
• C) Lobbying consumers and firms to reduce consumption of energy
• D) Examining the trade-offs between ecological benefits of environmental legislation and its impacts on consumers' standard of living

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Definitions:

Sales Tax

A tax imposed by a government on the sale of goods and services.

Credit Period

Length of time allowed for payment of goods sold on account.

Discount Period

The time frame in which a payment can be made at a reduced rate.

Contra-revenue Account

An account that offsets revenue accounts on the income statement, such as sales returns, allowances, and discounts.