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Recall the Application About How Having Car Insurance Affects Driving

Question 195

Multiple Choice

Recall the Application about how having car insurance affects driving behavior to answer the following
question(s) .
-Recall the Application. A study of the effect of automobile insurance and traffic fatalities conducted by Alma Cohen and Rajeev Dehejia estimates that a one percentage point decrease in the number of uninsured drivers


A) decreases the number of traffic fatalities by 10 percent.
B) decreases the number of traffic fatalities by 0.5 percent.
C) has no measurable effect on the number of traffic fatalities.
D) increases the number of traffic fatalities by 2 percent.

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