A New Tax on Gasoline Causes a Reduction in the Purchase

question 3

Multiple Choice

A new tax on gasoline causes a reduction in the purchase of new vehicles with poor fuel economy.This is an example of what type of incentive?

• A) negative direct
• B) positive direct
• C) negative indirect
• D) positive indirect
• E) The tax does not provide an incentive.

Recognize the specific challenges faced by women and children in impoverished regions.

Grasp the effects of globalization and social change on world development.

Define transnational communities and their roles in the modern world.

Understand the concepts of perfect competition and market equilibrium.

---

Definitions:

Exchange Process

The exchange process refers to the series of actions in which two or more parties give something of value to each other, usually in the context of business or trade.

Perceived Needs

The subjective understanding or belief of individuals about what they must have or achieve.

Buyer's Market

A market condition characterized by an abundance of goods available, giving buyers an advantage over sellers in price negotiations.

Shortage of Goods

A situation where the demand for a product exceeds the supply available in the market, often leading to higher prices and unmet consumer needs.