The U.S. government does not allow toggle switches for power windows in automobiles. The National Highway Traffic Safety Administration found that the regulation will save about two children every three years and have negligible costs because the industry will have plenty of time to incorporate new switches into future vehicles. Evaluating this new rule in terms of costs and benefits, an economist would most likely conclude that: " A.) it was a good decision because the benefits exceed the costs. B.) it fails because it should take effect immediately not after four years. C.) it is a bad decision because the chances of a child dying (less than one per year) are so small that they can be ignored. D.) we cannot tell if it is a good decision without knowing the ages of the children who might be saved by the regulation.

The U.S. government does not allow toggle switches for power windows in automobiles. The National Highway Traffic Safety Administration found that the regulation will save about two children every three years and have negligible costs because the industry will have plenty of time to incorporate new switches into future vehicles. Evaluating this new rule in terms of costs and benefits, an economist would most likely conclude that: " A.) it was a good decision because the benefits exceed the costs. B.) it fails because it should take effect immediately not after four years. C.) it is a bad decision because the chances of a child dying (less than one per year) are so small that they can be ignored. D.) we cannot tell if it is a good decision without knowing the ages of the children who might be saved by the regulation.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter16: Externalities, The Environment, And Natural Resources

Section: Chapter Questions

Problem 2DQ

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