The federal government wants more people to buy hybrid or electric cars. Currently, they are more expensive than cars fueled by gas or diesel. In a market or mixed economy, what might the government do to benefit the car manufactures and encourage people to buy hybrid or electric cars?

Question

A. Set a maximum price that a company can charge for a hybrid or electric car

B. Create competition by making their own hybrid and electric cars

C. Fund companies to do research on the creation of more fuel efficient cars

D. Create incentive to buy hybrid or electric cars by reducing the sales tax

Is the answer D.?

Answer 1

I agree.

However, C could also be the answer.

Check your text materials.

Answer 2

So, it it C or D?

Answer 3

Its D. I am doing the same test and D seems like the most logical answer for what my teachers are looking for, I'm in 8th Grade taking a segment test so I know this kind of stuff.