Recall the Application about how having car insurance affects driving behavior to answer the following question(s).Recall the Application. A study of the effect of automobile insurance and traffic fatalities conducted by Alma Cohen and Rajeev Dehejia estimates that a one percentage point decrease in the number of uninsured drivers:
A. decreases the number of traffic fatalities by 10 percent.
B. decreases the number of traffic fatalities by 0.5 percent.
C. has no measurable effect on the number of traffic fatalities.
D. increases the number of traffic fatalities by 2 percent.
Answer: D
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All of the following are true regarding the Economic Order Quantity model except which one?
A) It determines the cost-minimizing quantity managers should order to keep in inventory. B) It assumes demand is known with certainty. C) It accounts for seasonal changes in demand. D) It assumes demand is spread evenly over a time period.
A nation's production possibilities curve [PPC] will shift outward if its workers receive better training
a. True b. False Indicate whether the statement is true or false
Who bears the burden of an excise tax if demand is perfectly inelastic; if supply is perfectly inelastic? Use graphs in your explanation
The deadweight loss that is associated with a monopolistically competitive market is a result of
a. price falling short of marginal cost in order to increase market share. b. price exceeding marginal cost. c. the firm operating in a regulated industry. d. excessive advertising costs.