In 1998, the National Highway Traffic Safety Administration distributed the film elmet Laws, We All Pay the Price. Two reasons for this title are that some injured sts are treated at public expense (Medicaid) and that the dependents of those cidents receive public assistance. oes the purchase of a motorcycle by an individual who does not wear a helmet cate a negativ externality? Explain.

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter27: Markets And Government
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In 1998, the National Highway Traffic Safety Administration distributed the film
Without Helmet Laws, We All Pay the Price. Two reasons for this title are that some injured
motorcyclists are treated at public expense (Medicaid) and that the dependents of those
killed in accidents receive public assistance.
a. . Does the purchase of a motorcycle by an individual who does not wear a helmet
create a negativ externality? Explain.
b. If so, how should government set a no-helmet tax that would lead to
Transcribed Image Text:In 1998, the National Highway Traffic Safety Administration distributed the film Without Helmet Laws, We All Pay the Price. Two reasons for this title are that some injured motorcyclists are treated at public expense (Medicaid) and that the dependents of those killed in accidents receive public assistance. a. . Does the purchase of a motorcycle by an individual who does not wear a helmet create a negativ externality? Explain. b. If so, how should government set a no-helmet tax that would lead to
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