Home Categories portable think tank Milk Coke Economics

Chapter 112 Question 101

Why do Europeans prefer to buy smaller cars than Americans? BMW's five-series cars are sold all over the world.In Europe, many drivers choose to have a displacement of one.Six-liter models are available in the United States, and BMW's minimum configuration is also a three-liter six-cylinder engine.Generally speaking, cars sold in Europe have smaller displacement and fewer cylinders than those sold in the United States.Why do Europeans prefer to buy cars with smaller displacement? Some people think that the congested roads in Europe make the use of high-performance engines not as large as in the United States.But there are no speed limits on many European roads. Drivers of Porsches and Ferraris often drive at a speed of 150 miles per hour.

Of course, these drivers are the kind of people who don't care much about money.The average European prefers a smaller car than the average American because of the high taxes in Europe.For example, in recent years, the average tax-included price of a gallon of gasoline in Europe has been twice as high as that in the United States.Another factor is that some European countries levy car taxes based on engine displacement. Europeans choose to buy cars with smaller displacement not because they don't like to drive fast, but because the government imposes too high a tax on larger displacement vehicles.

Press "Left Key ←" to return to the previous chapter; Press "Right Key →" to enter the next chapter; Press "Space Bar" to scroll down.
Chapters
Chapters
Setting
Setting
Add
Return
Book