From 2004 through 2011, the federal subsidy on U.S. ethanol production was roughly 50 cents per gallon.

Question:

From 2004 through 2011, the federal subsidy on U.S. ethanol production was roughly 50 cents per gallon. Use the theory of rational ignorance to explain why the ethanol subsidy was only about 50 cents per gallon rather than, say, $5 per gallon.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

The Economics of Public Issues

ISBN: 978-0134018973

19th edition

Authors: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North

See More Books

Question Posted: Oct 20, 2018 08:04 AM

See More Questions

Over the past decade, the federal government has taken significant steps to encourage the development of ethanol and other fuels made from plants as a partial replacement for gasoline. These actions...
Mortgage Interest Deductibility, Land Values and the Equilibrium Rate of Return on Capital: In the text, we suggested that the property tax can be thought of in part as a tax on land and in part as a...
The Constitution in Your Community Assume that you are working for a law firm that has just been retained by Steve Smith, a local home owner who is upset with his local governments enforcement of a...
In Exercises determine whether Rolle's Theorem can be applied to on the closed interval [a, b]. If Rolle's Theorem can be applied, find all values of c in the open interval (a, b) such that '(c) =...
The total annual energy consumption in the United States is about 1 1020 J. How much mass would have to be converted to energy to fuel this need?
A refrigerator has a 1000 W compressor, but the compressor runs only 20% of the time. If electricity costs $0.10/kWh, what is the monthly (30 day) cost of running the refrigerator?
Water flows steadily between fixed vanes, as shown in Fig. P5.47. Find the $x$ and $y$ components of the water's force on the vanes. The total volume flow rate is \(100 \mathrm{~m}^{3} /...
National Insurance Associates carries an investment portfolio of stocks, bonds, and other investment alternatives. Currently $200,000 of funds are available and must be considered for new investment...
5. Consider the following C code: int pow_int( int b, int p) { // compute bp } int main() { } int x; x = pow_int( 2, 15 ); printf("%d", x); Write a RISC-V assembly language program for this code....
RBI Corporation Case - Social Media Risks and Rewards & Balanced Scorecard Metrix (focus chs3,7,11,15)PART 1) You work for a large restaurant chain (RBI Corporation) that is controlled tightly by...
Why do you suppose the federal government gives special treatment to owners of fertile farmland rather than, say, automobile mechanics?
The EPA has approved the use of up to 15 percent ethanol in fuel blends. Cars built before 2007 (especially those built before 2001) are at risk of considerable engine damage if they run on such E15...
Assume the same facts as in Problem C:12-21 and that Marcy has decided to give Phil property valued at $11 mill ion. Phil probably will leave the gifted property to their children under his will. a....
Watch the following link: https://www.youtube.com/watch?v=_FSHKircIoA Describe and Analyze Rebar Jaff's Ted Talk contrasting his experiences with Canadian multiculturalism with his experiences...
What role does strategic foresight play in the formulation of comprehensive change management strategies, enabling proactive identification and mitigation of potential risks and bottlenecks?
Identify the opportunities available to the company Obtain all the pertinent information Estimate the cost (based on the information you have) for the annual costs (you may have to do some additional...
https://www.youtube.com/watch?v=_FSHKircIoA Describe and Analyze Rebar Jaff's Ted Talk contrasting his experiences with Canadian multiculturalism with his experiences addressing attitudes towards...
She has heard that corporations are limits on the amount of interest expense that is deductible for corporations. Is this true? Do these limits affect AHS's return?Explain.
Industrial Electric Services has a contract with an Embassy in Mexico to provide maintenance for scanners and other devices in the building. What is the present worth of the contract (in year 0) if...
r = 0.18 Find the coefficients of determination and non-determination and explain the meaning of each.
What is the difference between formal and informal groups? Give an example of each.
Describe the stages in the punctuated-equilibrium model and explain which types of groups it applies to.
How can group cohesiveness be increased? Give specific recommendations.x2
Assume that you are the leadership team of a convenience store chain that has more than 300 outlets. The company is facing an inventory shrinkage problem, and store managers report that the main...
1 . An employee at Amy's candles has noticed that some order quantities in the two reports presented are different although the order numbers are the same. We normally refer to such data as dirty....
On Monday, April 5, 2010, just before 3:00 in the afternoon, miners at Massey Energy Corporation's Upper Big Branch coal mine in southern West Virginia were in the process of a routine shift change....

From 2004 through 2011, the federal subsidy on U.S. ethanol production was roughly 50 cents per gallon.

Question:

Step by Step Answer:

As the subsidy gets larger two things happen i The efficiency costs grow relative to the a...View the full answer

The Economics of Public Issues

Students also viewed these Business questions