Which of the Following Policies Would Work Best Towards Reducing

question 8

Multiple Choice

Which of the following policies would work best towards reducing traffic jams?

• A)Relaxation of government restrictions on the number of cars being produced and sold
• B)A reduction in interest rates on car loans
• C)The imposition of a marginal fee to use certain roads during peak traffic hours
• D)A levy of a fixed annual payment by car owners as traffic congestion fees

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Definitions:

Indirect Costs

Expenses that are not directly attributable to the production of goods or delivery of services but are necessary for the operation of a business, such as utilities or rent.

Cost Object

Anything for which a separate measurement of costs is desired, such as a product, service, project, or activity.

Upstream Cost

Expenses related to the exploration, development, and production phases in industries such as oil and gas.

Marketing

The process of promoting, selling, and distributing a product or service, including market research and advertising.