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 manufacturers and encourage people to buy hybrid or electric cars?

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

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

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

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

The government might do to benefit the car manufacturers and encourage people to buy hybrid or electric cars is to create incentive to buy hybrid or electric cars by reducing the sales tax. The correct option is 4.

What is hybrid or electric cars?

Hybrid cars are those cars that can be run by electricity and petrol/diesel both. These cars can switch between them. They are more efficient because they can run with more than two types of power source.

Electric cars are those care that are chargeable, and they will run by using electricity. They will be cheaper than diesel cars because diesel and petrol prices are going high. That's why they are important for the environment and the economy of the world.

Thus, the correct option is 4. Create incentive to buy hybrid or electric cars by reducing the sales tax.

To learn more about hybrid or electric cars, refer to the link:

https://brainly.com/question/8000753

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