Critically evaluate the following statement. "Automobile manufacturers continue to produce cars that are dangerous
Therefore the industry should be considered as a market failure and safety mandates should be imposed by the government to insure that all cars are completely safe."
Safety is a good that people choose to purchase. Evidence of this is apparent around us. Some people choose to purchase more expensive cars that are safer than others. Typically these cars are produced with more safety features, are heavier and larger than other cars. Some people choose to purchase smaller cars for their fuel economy. By doing so they are implicitly choosing to "purchase" less safety. It is not necessarily a form of market failure if people are getting what they pay for.
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Resource use is allocatively efficient if the
A) total cost of what the resource produces is less than the total benefit of what is produced. B) total cost of what the resource produces is equal to the total benefit of what is produced. C) marginal benefit of what the resource produces has diminished to zero. D) marginal cost of what the resource produces is equal to the marginal benefit of what is produced.
The U.S. government provides monthly payments to retired workers under which program?
A) the Old Age, Survivors, Disability and Health Insurance (OASDHI) B) the Temporary Assistance for Needy Households (TANF) C) the Supplementary Security Income (SSI) D) a series of income tax rebates