Commercial airlines have two primary suppliers of large jet aircraft: Boeing and Airbus
Since millions of people fly with commercial airlines each year, should these aircraft manufacturers be required to incorporate every possible safety feature into the aircraft they manufacture? Should the manufacturers be allowed to incorporate no safety features? If some safety considerations are to be required, how would an economist decide on which features to include and which not to include?
Some safety measures would save so few lives that requiring them to be installed would not be cost-justified. Some safety measures are highly effective and save lives at relatively low costs, so installing them would be cost justified. An economist would choose to install those features that are cost justified and not install those that are not.
You might also like to view...
When the government converted the highway from 4 lanes into 6 lanes, they claimed the capacity had increased by 50 percent
When the government switched the highway back from 6 lanes to 4 lanes, they claimed the capacity had been decreased by 33 percent. Had the government used the midpoint method, the percentage increase would have been ________ percent and the percentage decrease would have been ________ percent. A) 50; 50 B) 33; 33 C) 33; 50 D) 40; 40
If we compare the wage rate and the level of employment achieved in a competitive labour market with those in a monopsonistic labour market, the latter will generate
A) a lower level of employment and a lower wage. B) the same outcomes as in a competitive labour market. C) a higher level of employment and a higher wage rate. D) a lower level of employment and a higher wage rate. E) a higher level of employment and a lower wage.