Recall the Application about how having car insurance affects driving behavior to answer the following question(s).Recall the Application. Based on the results of studies mentioned in the Application, what should we do with mandatory/compulsory insurance?

A. We should conduct more studies to compare the benefits of fully insured vehicles to the costs, including the increase in fatalities on more hazardous roads.
B. We should ban all insurance because mandatory insurance results in more fatalities.
C. We should allow mandatory insurance, but the government should pay for it.
D. We should ban driving altogether, to decrease automobile deaths.


Answer: A

Economics

You might also like to view...

To counter a speculative attack on an overvalued currency, the monetary policymakers must ________ monetary policy and to fight a recession the monetary policymakers must ________ monetary policy.

A. ease; ease B. tighten; tighten C. tighten; ease D. ease; tighten

Economics

Identify the non-price determinants that create changes in demand and can cause a shift in the demand curve

What will be an ideal response?

Economics

Suppose Wave detergent is sold in a monopolistically competitive market. If the price of Wave detergent is currently $6, and the average cost of producing Wave is $4, in the long run we can expect:

A. firms to enter the detergent market and sell products similar to Wave, shifting the demand curve for Wave to the left. B. firms to enter the detergent market and sell product similar to Wave, shifting the demand curve for Wave to the right. C. the producers of Wave to go out of business. D. the producers of Wave to earn economic profits greater than zero.

Economics

If Belgium has exports of 50 billion euros and imports of 40 billion euros, then it is running a trade deficit.

Answer the following statement true (T) or false (F)

Economics