If We Observe That the Amount of Vehicle Miles Traveled

question 75

Multiple Choice

If we observe that the amount of vehicle miles traveled rises after the price of gasoline rises, then we can conclude that

• A)the amount of vehicle miles traveled and the price of gasoline are positively correlated.
• B)the amount of vehicle miles traveled and the price of gasoline are negatively correlated.
• C)the amount of vehicle miles traveled causes the price of gasoline to go up.
• D)the price of gasoline causes the amount of vehicle miles traveled to go up.
• E)a negative causation occurs between the amount of vehicle miles traveled and the price of gasoline

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Definitions:

Expenditures

Outflows of money or other valuable assets that are paid or incurred as a result of acquiring goods or services.

Acquisition Cost

The total cost that a company recognizes for bringing an asset into its possession, including purchase price, installation charges, and other necessary expenditures.

Salvage Value

The anticipated salvage value assigned to an asset after its period of use concludes.

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate.