The Federal Aviation Administration Requires Large Commercial Jets to Install

question 20

Multiple Choice

The Federal Aviation Administration requires large commercial jets to install more safety equipment than small private planes. This policy is consistent with the Cost-Benefit Principle because:

• A)the marginal cost of safety is smaller on small private planes than on large commercial jets.
• B)there are relatively few small private planes.
• C)one fewer commercial jet accident will save more lives than one fewer private plane accident.
• D)commercial airlines can afford to install safety equipment, but the owners of small private planes cannot.

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Definitions:

Shipload

A measurement or quantity of cargo that is large enough to be carried by a ship.

Duress

Coercion or compulsion by threat or force, often affecting the validity of a contract.

Assignment

The transfer of rights, property, or responsibilities from one party to another.

Treasury Bills

Short-term debt obligations issued by the government to finance its operations, with maturities ranging from a few days to one year.