The number of miles a household drives its vehicles each year is determined by its ________ of driving.

Question

Quizplus · Accepted Answer

The number of miles a household drives is determined by its private cost of driving, which includes factors such as car ownership, fuel costs, and maintenance expenses. Opportunity cost is the value of the next best alternative that must be given up to pursue a certain action, and is not directly related to driving. Social cost and external cost refer to the costs imposed on society or third parties, such as pollution or congestion, which are not directly controlled by the household's decisions about how much to drive.

The Number of Miles a Household Drives Its Vehicles Each