fuel efficiency

Honda promotes Accord by saying “it has a fuel efficiency of 30 mpg (miles per gallon) on

highway.” (1) What is

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about this statement? (2) If the best engine currently available

can run at 48 mpg, what is Accord’s fuel efficiency? (3) Suppose next year, a breakthrough

technology improves the best engine’s performance to 85 mpg and Accord’s to 50 mpg, what

would be productivity growth, efficiency change, and technical change for Accord? (4) How can

you check the results obtained above is correct? (Hint: it might help to draw an X-Y diagram.)