Your State Is Considering Enacting a Law Requiring That All

question 39

Multiple Choice

Your state is considering enacting a law requiring that all motorcycle operators and their passengers wear a helmet.Motorcyclists vary in the degree to which they value being able to ride helmet-less and in the extent to which they value the safety provided by a helmet.
Without the regulation,who would wear a helmet?

• A)cyclists and passengers for whom the marginal benefit of increased safety is greater than or equal to the expected cost of being in a serious accident.
• B)cyclists and passengers for whom the marginal benefit of increased safety is greater than or equal to the purchase price of a helmet.
• C)cyclists and passengers for whom the marginal benefit of increased safety is greater than or equal to the lost value of riding helmet-less.
• D)cyclists and passengers for whom the marginal benefit of increased safety is greater than or equal to the lost value of riding helmet-less plus the purchase price of a helmet.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the issuer's accounting system but have not yet been cashed or cleared by the bank.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure consistency.

Days' Sales Uncollected

Days' sales uncollected is a financial metric that estimates the average number of days it takes for a company to collect payments from its credit sales, reflecting on the efficiency of its credit and collection policies.