Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Chapter 8, Problem 18QE
To determine

Reason for charging the minimum rate to married couples by insurance companies.

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Insurance premiums are very high for young drivers largely due to the fact that young drivers get into more automobile accidents than other drivers. Do you think that it is fair that young people are charged more for the same insurance that other drivers have? Is it fair that regardless of how good of a driver is, just because a driver is young he or she is charged more for their car insurance?
The speed limit on Singapore roads, even expressways, never exceeds 90 kmh, much less than the top speed of HPCs. But there is a road racing culture where individuals perform stunts and races on public roads, far exceeding speed limits. What, if anything should government do about the HPC market? Should such cars be banned outright? What would be the problems with such interventions?
Since humans have two kidneys, you could sell a kidney and still live a long, healthy life.  Given that there is such a demand for organs, do you think we should allow individuals to sell their organs like kidneys?  Who do you anticipate would be most likely to sell their organs and who are the most likely to buy organs?  Do you foresee any unintended consequences of legalizing the sale of organs?

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