The Government Has Been Trying to Encourage the Use of Fuel-Efficient

question 130

Multiple Choice

The government has been trying to encourage the use of fuel-efficient cars.One way it has been doing this has been by allowing fuel-efficient cars to use a separate highway lane.This encourages people to use fuel-efficient cars because

• A) those who place a high value on their scarce time may be encouraged to buy a fuel-efficient car to take advantage of the separate highway lane.
• B) those who place a low value on their scarce time may be encouraged to buy a fuel-efficient car to take advantage of the separate highway lane.
• C) those who are more concerned about the environment are also those who happen to place a high value on their time.
• D) those who purchase a fuel-efficient car are forced to pay more for a new car,and the use of the separate highway lane compensates them for this.
• E) those who purchase a fuel-efficient car are likely to be unhappy because it is less powerful or more cramped inside; use of the separate highway lane compensates them for this.

---

Definitions:

FIFO Method

"First In, First Out," an accounting method for valuing inventory where the first items placed in inventory are considered sold first.

Ending Inventory

The total value of all unsold goods held by a company at the end of an accounting period.

Month End Inventory

Describes the total value of all inventory held by a business at the end of a month, used for accounting and reporting purposes.

Pairs Of Skis

Two skiing boards used for the sport of skiing, sold or used together as a set.