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Your State Is Considering Enacting a Law Requiring That All

Question 67

Multiple Choice

Your state is considering enacting a law requiring that all motorcycle operators and their passengers wear a helmet.Motorcyclists vary in the degree to which they value being able to ride helmet-less and in the extent to which they value the safety provided by a helmet.
If ___ external costs are incurred if a cyclist is involved in an accident,the optimal level of helmet wearing will be ___ provided by private markets.


A) zero;efficiently
B) zero;under
C) substantial;efficiently
D) substantial;over

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