Which Scenario Would Be Least Likely to Be Encouraged in a Sustainable

question 29

Multiple Choice

Which scenario would be least likely to be encouraged in a sustainable energy future? 

• A) the practice of permitting utilities to earn money by reducing electricity demand 
• B) full-cost pricing that includes the social and environmental costs of energy sources 
• C) a requirement that all energy systems supported by government funds be based on cost-benefit analyses 
• D) a requirement that electrical production be done on a least-cost basis

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Definitions:

Lending Standards

The set of criteria used by banks and financial institutions to determine the creditworthiness and eligibility of prospective borrowers.

Competitive Markets

Markets characterized by many buyers and sellers where no single participant can significantly influence the price of goods or services.

Externalities

Effects of a transaction or activity on third parties who are not directly involved, which can be either beneficial (positive externalities) or harmful (negative externalities).

Property Rights

Legal rights defining the ownership and use of resources including land, intellectual property, and personal assets.