Suppose that in most car collisions between cars of unequal size, the smaller car sustains the most damage and its occupants suffer the most injury. In answering the following question, assume that, on average, smaller cars generate less air pollution than larger cars and that every person in the economy drives at least one car. In deciding what kind of car to buy, individuals:
A. will have a strong incentive buy large cars because large cars are safer than small cars.
B. will fully internalize the full cost of the air pollution caused by larger cars.
C. will fully internalize the safety benefit to others of driving a small car.
D. not consider their own safety in deciding what kind of car to buy.
Answer: A
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