When State Regulators Require Consumers to Purchase and Use a Safety

question 83

Multiple Choice

When state regulators require consumers to purchase and use a safety device,the regulation

• A)always reduces total economic surplus.
• B)has an ambiguous effect on total economic surplus,depending on whether the regulation infringes on personal liberty.
• C)does not reduce total economic surplus if the marginal cost of providing the last device purchased is equal to the marginal social benefit of that device.
• D)increases total economic surplus if the government subsidizes the purchase.

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Definitions:

Reliability Coefficients

Statistics that measure the consistency or stability of scores from a test or measurement tool over time.

Internal Consistency

A measure of how well the items on a test measure the same construct or concept.

Reliability

The consistency and stability of a measurement over multiple trials or observations.

Construct Validity

The degree to which an assessment or tool accurately gauges the theoretical idea or construct it aims to assess.