The U.S. government does not allow toggle switches for power windows in automobiles. The National Highway Traffic Safety Administration found that the regulation will save about two children every three years and have negligible costs because the industry will have plenty of time to incorporate new switches into future vehicles. Evaluating this new rule in terms of costs and benefits, an economist would most likely conclude that: " A.) it was a good decision because the benefits exceed the costs. B.) it fails because it should take effect immediately not after four years. C.) it is a bad decision because the chances of a child dying (less than one per year) are so small that they can be ignored. D.) we cannot tell if it is a good decision without knowing the ages of the children who might be saved by the regulation.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The U.S. government does not allow
toggle switches for power windows in
automobiles. The National Highway
Traffic Safety Administration found that
the regulation will save about two
children every three years and have
negligible costs because the industry
will have plenty of time to incorporate
new switches into future vehicles.
Evaluating this new rule in terms of
costs and benefits, an economist
would most likely conclude that: "
A.) it was a good decision because the
benefits exceed the costs.
B.) it fails because it should take effect
immediately not after four years.
C.) it is a bad decision because the
chances of a child dying (less than one
per year) are so small that they can be
ignored.
D.) we cannot tell if it is a good
decision without knowing the ages of
the children who might be saved by
the regulation.
Transcribed Image Text:The U.S. government does not allow toggle switches for power windows in automobiles. The National Highway Traffic Safety Administration found that the regulation will save about two children every three years and have negligible costs because the industry will have plenty of time to incorporate new switches into future vehicles. Evaluating this new rule in terms of costs and benefits, an economist would most likely conclude that: " A.) it was a good decision because the benefits exceed the costs. B.) it fails because it should take effect immediately not after four years. C.) it is a bad decision because the chances of a child dying (less than one per year) are so small that they can be ignored. D.) we cannot tell if it is a good decision without knowing the ages of the children who might be saved by the regulation.
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