Suppose your state government could undertake some measures that would improve the safety of highways within the state. If the goal is to use resources efficiently, how many of the measures should be undertaken?
a. all of them
b. all measures up to the point at which the marginal social benefit from safety improvements equals the marginal social cost
c. all measures for which the marginal social benefits from safety improvements are greater than zero
d. all measures for which the marginal social benefit from safety improvements is at least as great as what motorists have reported they would be willing to pay
Ans: b. all measures up to the point at which the marginal social benefit from safety improvements equals the marginal social cost
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