Which of the Following Statements Is Correct

question 135

Multiple Choice

Which of the following statements is correct?

• A) Automotive manufacturers prefer stricter fuel economy regulations to higher gasoline taxes.
• B) Higher gasoline taxes have provided a market-based incentive for Europeans to buy more fuel-efficient vehicles.
• C) Higher gasoline taxes have had no effect on the U.S. demand for gasoline because the demand for gasoline is perfectly inelastic.
• D) Fuel efficiency regulations are more effective than gasoline taxes in reducing the demand for gasoline in the United States and Europe.

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Definitions:

Defense Mechanism

Unconscious psychological strategies employed to protect oneself from anxiety or social sanctions and to provide a refuge from a situation with which one cannot currently cope.

Painful Realities

The acceptance or acknowledgment of difficult, distressing, or unpleasant truths or situations.

Rationalization

A defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Unconsciously Fearful

Pertaining to the experience of fear or anxiety that operates below the level of conscious awareness, influencing behavior and perception without overt acknowledgment.