Question

Brad is a middle-aged daredevil; he enjoys driving fast, but also wants to avoid accidents. Economic theory predicts that, if airbags are mandatory, Brad will likely have more accidents. Why is this? O Brad will defy the law and not have airbags installed, because he likes to drive fast. The expected cost of an accident at any given speed decreases The benefits of driving fast increase Brad is confident that he can get away with driving fast, since others will have airbags.

Answer 1

Option B is correct.

Because with the less speed the percentage of an accident is lesser and he will not likely to have more accidents. This question follows the theory of expected cost, as the value is to be multiplied with the probability of that outcome. This cost must be weighed against the cost of preventing the accident.