Suppose That a Small County Is Considering Adding a Guard

question 79

Multiple Choice

Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000. The average damage done to vehicles that slide off the road at the curve is $10,000. It is expected that the guard rail will prevent 5 vehicles from sliding off the road during its usable life. What should the county do?

• A)Install the guard rail because safety is priceless.
• B)Install the guard rail because the benefits exceed the costs.
• C)Do not install the guard rail because the costs exceed the benefits.
• D)Do not install the guard rail at any cost because drivers can purchase private insurance for their vehicles.

---

Definitions:

Technological Innovation

The process of developing and implementing new technologies or improving existing ones to meet emerging needs or to create new market opportunities.

Common Law

A body of unwritten laws based on legal precedents established by the courts, influencing and guiding judicial decision-making.

Service Contracts

Agreements between customers and service providers outlining the terms for the provision of services.

Rules of Law

The principle that all actions are governed by applicable laws, which are applied equally and fairly to all individuals.