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.

---

Definitions:

Extraordinary Repairs

Significant and infrequent repairs that extend the useful life of an asset beyond its original estimate.

Useful Life

Useful Life is the estimated period over which an asset is expected to be economically usable by an entity, with a finite period for depreciation or amortization.

Accumulated Depreciation

A cumulative total of all depreciation expenses charged on an asset over its life up to a specific date.

Accumulated Depreciation

The cumulative amount of depreciation for an asset up to a single point in its life.