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Analyze the positive versus normative arguments in the following case. What statements of positive economics are used to support requiring air bags? What normative reasoning is used? Should the Government Require Air Bags? Technological advances continuously provide new high-tech options to save lives that add to the price of cars, such as cameras, radar, and airbags. Air bag advocates say air bags will save lives and the government should require them in all cars. Air bags add an estimated $600 to the cost of a car, compared to about $100 for a set of regular seat belts. Opponents argue that air bags are electronic devices subject to failure and have produced injuries and death. For example, air bags have killed both adults and children whose heads were within the inflation zone at the time of deployment. Opponents therefore believe the government should leave the decision of whether to spend an extra $600 or so for an air bag to the consumer. The role of the government should be limited to providing information on the risks of having versus not having air bags.

BuyFind

Economics For Today

10th Edition
Tucker
Publisher: Cengage Learning
ISBN: 9781337613040
BuyFind

Economics For Today

10th Edition
Tucker
Publisher: Cengage Learning
ISBN: 9781337613040

Solutions

Chapter
Section
Chapter 1, Problem 8SQP
Textbook Problem

Analyze the positive versus normative arguments in the following case. What statements of positive economics are used to support requiring air bags? What normative reasoning is used?

Should the Government Require Air Bags?

Technological advances continuously provide new high-tech options to save lives that add to the price of cars, such as cameras, radar, and airbags. Air bag advocates say air bags will save lives and the government should require them in all cars. Air bags add an estimated $600 to the cost of a car, compared to about $100 for a set of regular seat belts. Opponents argue that air bags are electronic devices subject to failure and have produced injuries and death. For example, air bags have killed both adults and children whose heads were within the inflation zone at the time of deployment. Opponents therefore believe the government should leave the decision of whether to spend an extra $600 or so for an air bag to the consumer. The role of the government should be limited to providing information on the risks of having versus not having air bags.

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Chapter 1 Solutions

Economics For Today
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