In 1998, the National Highway Traffic Safety Administration distributed the film Without Helmet Laws, We All Pay
Question:
a. Does the purchase of a motorcycle by an individual who does not wear a helmet create a negative externality? Explain.
b. If so, how should government set a no-helmet tax that would lead to a socially desirable level of motorcycle sales?
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a Yes there is a negative externality b For simplic...View the full answer
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Related Book For 
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
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