
Economic Analysis of Social Issues 1st Edition by Alan Grant
Edition 1ISBN: 978-0134098371
Economic Analysis of Social Issues 1st Edition by Alan Grant
Edition 1ISBN: 978-0134098371 Exercise 26
[Related to Application 2.2 on page 42] Every state requires car seats for children beyond age two. Application 2.2 suggests that such a requirement beyond age two does no good-that car seats provide no measurable safety difference. If most people eventually become parents, and all those parents are throwing significant money down the drain, why do you suppose there is no outcry to get rid of child safety seats? Is there a collective action problem at work? Explain.
Explanation
Cost-benefit analysis:
The cost-benefit...
Economic Analysis of Social Issues 1st Edition by Alan Grant
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