The US Government Does Not Allow Toggle Switches for Power Windows

question 21

Multiple Choice

The U.S. government does not allow toggle switches for power windows in automobiles. The National Highway Traffic Safety Administration found that the regulation will save about two children every three years and have negligible costs because the industry will have plenty of time to incorporate new switches into future vehicles. Evaluating this rule in terms of costs and benefits, an economist most likely would conclude that:

• A) it is a good decision because the benefits exceed the costs.
• B) it fails because it should take effect immediately, not after four years.
• C) it is a bad decision because the chances of a child dying (less than one per year) are so small that they can be ignored.
• D) we cannot tell if it is a good decision without knowing the ages of the children who might be saved by the regulation.

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Definitions:

Gasoline Production

The process of refining crude oil into gasoline, a key fuel for transportation.

Quantity Supplied

The full amount of a certain product or service that vendors are ready and able to transact at a chosen price during a particular period.

Management

The organization and coordination of activities to achieve defined objectives, typically within businesses or projects.

Quantity Supplied

The amount of a product or service that producers are willing and able to sell at a given price over a certain period of time.