The annual cost of collisions in the U.S.is approximately $300 billion.On average,the driver who causes an accident incurs about ________ of the costs,leaving the rest as an external cost imposed on others.
A)one-third
B)one-fourth
C)two-thirds
D)one-half

Question

Quizplus · Accepted Answer

According to the given statement, the annual cost of collisions in the US is approximately $300 billion. It also states that the driver who causes an accident incurs about 1/3rd of the costs, leaving the rest as an external cost imposed on others. So, the external cost imposed on others can be calculated as follows: External cost = Total cost - Cost incurred by the driver who caused the accident.

External cost = $300 billion - ($300 billion * 1/3)

External cost = $300 billion - $100 billion

External cost = $200 billion

Therefore, the driver who causes an accident incurs one-third (1/3) of the costs, leaving the rest two-thirds (2/3) as an external cost imposed on others. Hence, the best choice is C.

The Annual Cost of Collisions in the U