Question 6 (1 point) Listen
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Congress passes a new bill that mandates that all coal-fired power plants reduce carbon emissions
by an extra 196. A cost-benefit analysis indicates that the cost of reducing carbon emissions by this
amount will be $100 billion; whereas, the expected benefit of reducing emissions by 1% is only
$10 million. This is an example of which type of government failure?
a) Corruption
b) Agency Inertia
on 5 Saved
c) Pork-barreling
d) Dead-weight Loss to Society due to excessively high cost of compliance with regulations
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