Your State Is Considering Enacting a Law Requiring That All

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.
The regulation requiring helmets is more likely to enhance efficiency when

A) motorcycle accidents impose external costs.
B) motorcycle accidents do not impose external costs.
C) motorcyclists as a group are more risk averse than average.
D) motorcyclists as a group are less risk averse than average.