Suppose a Technological Advancement Makes Automobiles 50% Safer,and at the Same

question 47

Multiple Choice

Suppose a technological advancement makes automobiles 50% safer,and at the same time,the prices of automobiles go up by 25%.No other prices in the economy changed.Did the relative price of automobiles rise or fall?

• A) It depends on whether the safety improvements raise the cost of producing automobiles by more than, less than, or exactly 25%.
• B) The relative price of automobiles rose because the price went up by 25% when other prices did not rise.
• C) The relative price of automobiles fell because the price increased by 25% but the safety increased by 50%.
• D) It depends on whether consumers demand safer cars.

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Definitions:

Depressive Disorders

A group of mental health conditions characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in most activities.

Diagnostic Categories

Diagnostic categories are classifications of mental health or medical conditions as outlined in diagnostic manuals such as the DSM or ICD.

Disruptive Disorders

A group of psychiatric disorders characterized by persistent patterns of disruptive, rebellious, and antisocial behavior.

Impulse Control

The ability to resist or delay an impulse, drive, or temptation to act.