TABLE 4-1 Mothers Against Drunk Driving Is a Very Visible Group Whose

question 89

Multiple Choice

TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:

-Referring to Table 4-1, what proportion of accidents involved alcohol and a single vehicle?

• A) 25/400 or 6.25%
• B) 50/400 or 12.5%
• C) 195/400 or 48.75%
• D) 245/400 or 61.25%

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Definitions:

Willingness To Pay

The maximum amount an individual is prepared to spend on a good or service, indicating the value they derive from the item.

Marginal Cost

The money required to produce another unit of a product or service.

Public Good

A benefit of goods or services, free of charge to everyone in society, provided by public authorities or private organizations or individuals, without seeking financial gain.

Samuelson's Theory

Refers to Paul Samuelson's economic theories, particularly his contributions to public goods, welfare economics, and consumption theory.