Thinking Like an Economist

During the 1960s, automobiles were much more dangerous because they lacked certain safety elements such as seat belts and padded dashboards. Thus, if you were in an accident, the likelihood of dying was extremely high. The government responded by mandating that all cars provide seat belts and that all drivers wear seat belts.

There were additional regulations but focus on the new seat belt laws. 1.    What was the purpose of this new government regulation? 2.    Do you think this new policy increased or decreased the total number of automobile accidents per year? 3.    Do you think this new policy increased or decreased the probability of dying when in an automobile accident?

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4.    Do you think this new policy increased or decreased the number of automobile-related fatalities per year? 5.    Do you think this new policy made roads safer for pedestrians? Why?

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