The text compared which two methods of encouraging US consumers to reduce fuel consumption? a. Banning cars or banning fuel sales b. Using more news stories on TV or using school texts to explain the issues c. Limiting directly how many miles consumers could drive each week or limiting their purchases of fuel with quotas d. Imposing fuel-efficiency standards on autos or raising fuel taxes
The correct answer and explanation is:
Correct Answer: d. Imposing fuel-efficiency standards on autos or raising fuel taxes
Explanation (300 words):
The correct answer is (d) because these two methods — fuel-efficiency standards and fuel taxes — are commonly analyzed in policy discussions as strategies to reduce fuel consumption among U.S. consumers.
Fuel-efficiency standards, also known as Corporate Average Fuel Economy (CAFE) standards, are government regulations that require automakers to achieve a minimum average miles-per-gallon (MPG) rating across their fleets. This method targets manufacturers, compelling them to produce more efficient vehicles. Over time, it helps lower national fuel consumption by making cars that use less fuel per mile.
On the other hand, fuel taxes target consumers directly by making fuel more expensive. This creates a financial incentive for people to drive less, carpool, use public transportation, or buy more fuel-efficient vehicles. Economists often argue that fuel taxes are a more immediate and flexible way to reduce consumption, since they influence consumer behavior directly.
The comparison between these two methods — regulatory (standards) vs. market-based (taxes) — is common in policy debates. The text in question likely explored the effectiveness, political acceptability, and economic impact of both. For example, while fuel taxes are more efficient in economic theory, they are often unpopular with voters. In contrast, fuel-efficiency standards are politically more acceptable but may lead to unintended consequences like the “rebound effect” (people driving more because their cars are more efficient).
Options a, b, and c are incorrect because they either suggest unrealistic approaches (like banning fuel sales) or less commonly discussed and ineffective educational strategies (like school texts). The text compared practical policy options considered by economists and lawmakers.
Therefore, (d) is the correct and most contextually accurate answer.