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 rule in terms of costs and benefits, an economist most likely would conclude that:

Question

A. 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.
B. we cannot tell if it is a good decision without knowing the ages of the children who might be saved by the regulation.
C. it fails because it should take effect immediately, not after four years.
D. it is a good decision because the benefits exceed the costs.

Answer 1

Answer: D