Question 1 (Mandatory) (1 point)

Command-and-control policies, like requiring washing machines to be 21% more energy efficient to reduce energy consumption, are policy instruments regulators can use to address externalities. However, economists tend to favor other regulations because command-and-control policies often fail to achieve least-cost solutions.

Question 1 options:

	True
	False

Question 2 (Mandatory) (1 point)

Sometimes it is desirable to use command-and-control policies, like when vaccinating populations against smallpox, instead of subsidizing or taxing.

Question 2 options:

	True
	False

Question 3 (Mandatory) (1 point)

According to the blog post you read for this week, which strategy reduced Japanese electricity consumption during peak times more?

Question 3 options:

	Moral suasion (politely requesting consumers to use less electricity on particular days)
	Price treatment (raising the price of electricity during peak hours relative to the base rate)
	The control treatment that received neither moral suasion or the price treatment.
	None of the above

Question 4 (Mandatory) (1 point)

According to this week's blog post, what tool(s) should be used to lower energy consumption and water consumption?

Question 4 options:

	Only prices should be used.
	Only moral suasion (public service announcements and public appeals) should be used.
	Prices and moral suasion should be used to complement one another.

Question 5 (Mandatory) (1 point)

United States CAFE standards are vehicle performance standards with the goal of reducing fuel consumption and green house gas emissions. What do CAFE standards do?

Question 5 options:

	Set fuel blending standards for fuel companies that sell fuel in the United States.
	Set standards for the weight and horsepower of automobiles sold in the United States.
	Set standards on how many automobiles a person can own and lawfully drive in the United States.
	Set fuel efficiency standards for automobile manufacturers that sell vehicles in the United States.

Question 6 (Mandatory) (1 point)

The Renewable Fuel Standard can be considered a technology standard because it dictates the method of fuel blending refiners must use when producing motor vehicle fuel. What mistake did US regulators fail to account for when they designed the regulation?

Question 6 options:

	Gasoline demand would shift in because consumers would demand more fuel efficient vehicles and drive less.
	Ethanol supply would suddenly fall because corn farmers didn't want to grow corn to sell for ethanol production.
	The supply for advanced biofuels would shift out dramatically due to technological innovation making advanced biofuels easy to come by and cheap.

Question 7 (Mandatory) (1 point)

To qualify as renewable fuels under the Renewable Fuel Standard program, fuels must have lower greenhouse gas emissions associated with their production (the entire production process) relative to petroleum in 2005. Which of the following achieves the largest reduction is greenhouse gas emissions?

Question 7 options:

	Renewable fuels
	Advanced & Biodiesel fuels
	Cellulosic fuels

Question 8 (Mandatory) (1 point)

CAFE Standards have become more and more complex over the years, including differentiating fleets into "domestic passenger cars", "imported passenger cars", and "light-duty trucks", adjustments based on "footprint", adjustments based on how many miles a vehicle type is driven on average, and EPA incentive credits for certain technologies or vehicle types.

Question 8 options:

	True
	False