Which of the Following Is TRUE Regarding the Increasing Production

question 6

Multiple Choice

Which of the following is TRUE regarding the increasing production of biofuels in the United States?

• A) Ethanol and biodiesel are becoming competitors for gasoline and diesel fuel.
• B) If grown with minimal or no fossil fuel inputs, biofuels decrease greenhouse gas emissions.
• C) Increased use of biofuels improves national security by lessening dependence on foreign oil.
• D) A, B, and C are true.
• E) None of these answers are true.

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Definitions:

Producers

Producers are individuals or entities that create goods or provide services.

Efficiency Loss

The loss of economic efficiency that can occur when the balance between supply and demand is not achieved or is interfered with.

Excise Tax

A tax imposed on the sale of specific goods or services, often included in the price of the product, such as tobacco or alcohol.

Inelastic

Pertains to a scenario where the level of demand or supply for a product or service shows little reaction to price fluctuations.