4. Which one of the following statements on the causes of the energy efficiency gap is correct? a. The likelihood of buying an energy-efficient refrigerator is higher if a consumer perceives a discount rate that is much higher than the market discount rate. b. Bounded rationality implies that consumers make decisions by comparing benefits and costs. c. The principal/agent issue points out the possibility that a tenant is likely to use more energy if the utilities are covered in the rent. d. If energy markets are not competitive there will be an energy efficient gap.

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter1: Ten Principles Of Economics
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4. Which one of the following statements on the causes of the energy efficiency gap is correct? a. The likelihood of buying an energy-efficient refrigerator is higher if a consumer perceives a discount rate that is much higher than the market discount rate. b. Bounded rationality implies that consumers make decisions by comparing benefits and costs. c. The principal/agent issue points out the possibility that a tenant is likely to use more energy if the utilities are covered in the rent. d. If energy markets are not competitive there will be an energy efficient gap.
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