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Author Question: Is the 821 billion that the government would spend on incentive programs and compensation for higher ... (Read 51 times)

Engineer

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on: Jun 29, 2018
Is the 821 billion that the government would spend on incentive programs and compensation for higher energy prices part of the opportunity cost of producing electricity?
 
  What will be an ideal response?

Question 2

When an investor buys a corporate bond, the face value of the bond is
 
  A) a dividend payment on the bond. B) a loan to the corporation.
  C) a measure of ownership in the corporation. D) the coupon rate of the bond.


joshraies

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The incentive programs change what electricity providers buy in order to produce electricity with lower emissions. The goods and services forgone are the opportunity cost of these programs. Compensation for higher energy prices is a transfer payment from taxpayers to consumers. Nothing is forgone and so it is not an opportunity cost.

Answer to Question 2

B


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