Which of the Following Best Explains Why Making Air Travel

question 123

Multiple Choice

Which of the following best explains why making air travel completely safe is not efficient?

• A) After some level of safety is reached, making airplanes even safer is not worth the opportunity cost that would be incurred.
• B) Because one can't put a price on human life, airplane safety generally doesn't matter economically.
• C) The benefit from additional airplane safety will generally rise as airplanes are made safer, more than offsetting the opportunity cost involved.
• D) The question is misleading--making airplanes safer is always efficient.

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Definitions:

Random Walk Theory

The hypothesis that stock market prices evolve according to a random walk and, thus, the future movement of stock prices cannot be predicted.

Stock Prices

The cost at which shares of companies are bought and sold in the stock market, reflecting the market's valuation of these companies.

Forecast Accurately

The process of predicting future events, values, or trends with a high degree of precision.

Unexpected Factors

External or unforeseen elements that can impact outcomes in various contexts, including economic conditions, natural disasters, or social changes.