Explain how mandatory seat belt laws may reduce the negative externalities of risky behavior
What will be an ideal response?
Mandatory seat belt laws are designed to reduce the severity of injuries resulting from traffic accidents. By requiring all passengers in a vehicle to wear seat belts, the chances of serious injury are smaller, even when other drivers engage in risky behavior like speeding or reckless driving.
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A nonexcludable public good is characterized by nonrivalry in
A. production and nonexcludability. B. consumption and rivalry in production. C. consumption and excludability. D. consumption and nonexcludability. E. none of the above
(Consider This) The prisoner's dilemma is generally demonstrated through:
A. the kinked-demand model. B. game theory. C. monopolistic competition. D. a tightly knit cartel.
Which of the following CANNOT be eliminated in a growing economy such as the U.S. economy?
A) absolute poverty B) relative poverty C) both absolute and relative poverty D) Neither absolute nor relative poverty can be eliminated.
Assuming well-defined indifference curves, when marginal utility is zero, total utility is at a maximum.
Answer the following statement true (T) or false (F)