Problem
1. Why might an economist propose a policy that has little chance of adoption?
2. The number of auto accidents per year is the equivalent of a 737-plane crash every day. In the book Why Not? Yale professors Barry Nabalof and Ian Ayres suggest that computers that record driver behavior (similar to the black boxes in planes that record crashes) be installed in cars. In trials where such computers were installed in cars, crash rates fell by one-third.
a. If these boxes cost $100 each, and their installation reduces the probability of a crash that costs an average of $30,000 in damage to persons and vehicles, do such boxes make sense?
b. If they do make sense, what is a reason they are not installed?
c. In what cars will they likely be installed first?
d. What will their installation likely do to driving habits?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.