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Read the following scenario and answer the question below.
Burning fossil fuels and their derivatives produces, among other things, harmful pollutants such as particulates, acid rain
-producing sulfur and nitrogen oxides, and carbon oxides. These air pollutants threaten ecosystems all over the world, and high carbon dioxide levels contribute to global warming. Furthermore, fossils fuels have a limited supply. The market price of fossil fuels, especially crude oil, has continued to rise in recent years. Despite this, Americans continue to consume fossil fuels at alarming rates and rely upon them for most of energy needs. At various times, the federal government has considered mandating higher fuel efficiency standards for American vehicles as a possible solution to this environmental energy crisis. Most auto manufacturers, however, are opposed to the imposition of standards.
-What factor might lead to more political support for higher fuel- efficiency standards?
Marginal Adjustment
Small, incremental changes made to a plan, system, or calculation in response to changes in circumstances or new information.
Marginal Changes
Small incremental adjustments to a plan of action, often analyzed in economics to understand the effects of slightly altering production, consumption, or investment.
Normative Economic Statements
Statements that reflect an opinion or judgment about what ought to be in the economy, focusing on what should happen or what ought to be.
Microeconomics: A Contemporary Introduction
An educational resource that provides an updated overview of the principles and applications of microeconomics.
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