The Energy Policy Act of 2005 called for _____ production of ethanol using _____:
A) increased; loan guarantees, support for research, and tax credits
B) increased; price ceilings
C) decreased; loan guarantees, support for research, and tax credits
D) dereased; price floors

Question

Quizplus · Accepted Answer

The Energy Policy Act of 2005 was intended to increase the production of ethanol. It did so through a variety of measures including loan guarantees, support for research, and tax credits. This incentivized the production of ethanol and helped to make it more competitive with other forms of fuel. Option B is incorrect because price ceilings would limit the price that could be charged for ethanol, potentially making it less economically feasible to produce. Option C and D are both incorrect because they call for a decrease in either support or production, which is not in line with the goals of the Energy Policy Act.

The Energy Policy Act of 2005 Called for _____ Production