Answer to Question #81389 in Economics for Lina

Question

Robert recommends replacing seat belts with a $5000 citation if the driver gets into an accident which of courses is very costly. Use an economic model to explain why Roberts believe his idea would do a better job of reducing traffic accident that cause fatalities.

Answer 1

Robert recommends replacing seat belts with a $5000 citation if the driver gets into an accident which of courses is very costly. Roberts believe, that a $5000 citation will motivate drivers to drive more accurately not to pay money for car accident and that seat belt doesn't motivate to drive accurately as it saves the driver in the case of accident. But his idea may not do a better job of reducing traffic accident that cause fatalities, because seat belts are also very important and drivers are not always the causers of the accident.