Developing Alternative Energy Is Likely to Be an Effective Policy

question 63

Multiple Choice

Developing alternative energy is likely to be an effective policy option to reduce carbon emissions for states and the federal government. However, alternative energy is costly to develop yet produces less energy (than fossil fuels) for the investment. Which evaluative criteria would reflect this high cost- to benefit ratio?

• A) equity
• B) efficiency
• C) market incentives
• D) policy analysis

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Definitions:

Total Carrying Costs

The sum of all expenses associated with holding a particular investment or inventory, including storage, interest, depreciation, and insurance.

Discounted Price

A reduced price below the original mark-up, often to encourage purchase or clear inventory.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including repayment terms and interest rates.

Average Inventory

The mean value of inventory held by a company over a specific period of time, calculated to assess inventory levels and management efficacy.