This assignment has been solved
New order 63839 is available. Please check assignment description and offer your price.
TOPIC: Free Market and Ethical Issues
TYPE: Research Paper
: 17.04.2017 16:00
The Corporate Average Fuel Economy (CAFE) regulation. This is the US government’s requirement that auto manufacturers make their cars with a minimum average gas mileage. Maybe that sounds great, until you think about what else is likely to happen. To make a car get better mileage, that usually means making it lighter in weight, which means that it’s generally going to be less able to protect the occupants in a crash. Several studies have indicated that the CAFE regulation has resulted in thousands of additional highway deaths and injuries due to people driving around in gas-sipping cars that are not as crashworthy as they otherwise would have been. An early study on this was done by economists Crandall and Graham. – Describe how free market features could be introduced to help alleviate the social problem through free market operations of supply and demand. – Discuss the risks of introducing market mechanisms of supply and demand in situations where ethical issues are present.
FOLLOW US: Twitter: 1,301