Assume Barbara likes driving fast,but hates getting injured.If Congress passes a law for mandatory airbags,Barbara is likely to experience an increased number of accidents.Why?
A)The benefits of driving fast increase.
B)The expected cost of an accident at any given speed decreases.
C)Barbara will defy the law and not have airbags,since she thinks no one is going to enforce installing airbags in cars.
D)Barbara is confident that she can drive flawlessly since others will have airbags.

Question

Quizplus · Accepted Answer

With the mandatory installation of airbags, the expected cost of an accident at any given speed decreases since injuries and fatalities are likely to decrease. This may lead Barbara to take more risks while driving fast, thinking that the presence of airbags will protect her from harm. As a result, she may experience an increased number of accidents.

Assume Barbara Likes Driving Fast,but Hates Getting Injured