Question: Would it be efficient to pass legislation requiring the proof chemicals are safe before being used? No , as this legislation would never lead to
Would it be efficient to pass legislation requiring the proof chemicals are safe before being used?
No as this legislation would never lead to positive net benefits.
Yes, as citizens' have riskaverse preferences and they are averse to the potential damages from the chemicals.
No as citizens' have riskaverse preferences and they are averse to unnecessary laws.
No as citizens' have riskneutral preferences thus it is more efficient to wait and see if any harm from the chemicals can be proven.
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