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Representatives Waxman of California and Markey of Massachusetts proposed a law to limit greenhouse gas emissions from electricity generation and require electricity producers to generate a minimum percentage of power using renewable fuels, with some emission rights to be auctioned. The Congressional Budget Office estimated that the government would receive $846 billion from auctions and would spend $821 billion on incentive programs and compensation for higher energy prices. Electricity producers would spend $208 million a year to comply with the new rules. (Think of these dollar amounts as dollars' worth of other goods and services.) Would the Waxman-Markey law achieve production efficiency? O A. Yes, because wind power is free. O B. Yes, because we must cut greenhouse gas emissions at any cost. O C. No, because Congress always wastes resources. O D. Unlikely, because mandating which specific technology to use prevents producers from choosing the most efficient technology. O E. No, because any reduction in emissions puts the economy inside the PPF

Representatives Waxman of California and Markey of Massachusetts proposed a law to limit greenhouse gas emissions from electricity generation and require electricity producers to generate a minimum percentage of power using renewable fuels, with some emission rights to be auctioned. The Congressional Budget Office estimated that the government would receive $846 billion from auctions and would spend $821 billion on incentive programs and compensation for higher energy prices. Electricity producers would spend $208 million a year to comply with the new rules. (Think of these dollar amounts as dollars' worth of other goods and services.) Would the Waxman-Markey law achieve production efficiency? O A. Yes, because wind power is free. O B. Yes, because we must cut greenhouse gas emissions at any cost. O C. No, because Congress always wastes resources. O D. Unlikely, because mandating which specific technology to use prevents producers from choosing the most efficient technology. O E. No, because any reduction in emissions puts the economy inside the PPF

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Representatives Waxman of California and Markey of Massachusetts proposed a law to limit greenhouse gas emissions from electricity generation and require electricity producers to generate a minimum percentage of power using renewable fuels, with some emission rights to be auctioned. The Congressional Budget Office estimated that the government would receive $846 billion from auctions and would spend $821 billion on incentive programs and compensation for higher energy prices. Electricity producers would spend $208 million a year to comply with the new rules. (Think of these dollar amounts as dollars' worth of other goods and services.) Would the Waxman-Markey law achieve production efficiency? O A. Yes, because wind power is free. B. Yes, because we must cut greenhouse gas emissions at any cost. C. No, because Congress always wastes resources. O D. Unlikely, because mandating which specific technology to use prevents producers from choosing the most efficient technology. O E. No, because any reduction in emissions puts the economy inside the PPF. Click to select your answer. ? MacBook Air DII DD 888 F12 F10 F11 20 F8 F9 F6 F7 F5 F4 esc F2 F3 F1 & @ # $ ! 7 2 3 4 5 1 T Y Q W E tab K S D F G А caps lock C V B * 00
Transcribed Image Text:Representatives Waxman of California and Markey of Massachusetts proposed a law to limit greenhouse gas emissions from electricity generation and require electricity producers to generate a minimum percentage of power using renewable fuels, with some emission rights to be auctioned. The Congressional Budget Office estimated that the government would receive $846 billion from auctions and would spend $821 billion on incentive programs and compensation for higher energy prices. Electricity producers would spend $208 million a year to comply with the new rules. (Think of these dollar amounts as dollars' worth of other goods and services.) Would the Waxman-Markey law achieve production efficiency? O A. Yes, because wind power is free. B. Yes, because we must cut greenhouse gas emissions at any cost. C. No, because Congress always wastes resources. O D. Unlikely, because mandating which specific technology to use prevents producers from choosing the most efficient technology. O E. No, because any reduction in emissions puts the economy inside the PPF. Click to select your answer. ? MacBook Air DII DD 888 F12 F10 F11 20 F8 F9 F6 F7 F5 F4 esc F2 F3 F1 & @ # $ ! 7 2 3 4 5 1 T Y Q W E tab K S D F G А caps lock C V B * 00
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