ECONOMICS (CBSE/UGC NET)

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ECONOMICS

ECONOMIC SYSTEMS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The auto industry (car manufacturers) is forced to follow new safety regulations passed by Congress. These regulations will increase the effectiveness of air bags, which is a benefit for consumers, but there will also be some costs ____ Which of the following represent likely economic costs for consumers in this situation? Select all that apply.
A
The average price of cars increases
B
Fewer injuries occur as a result of automobile accidents
C
The number of emergency room visits due to car accidents drops dramatically
D
The amount of time needed to produce cars increases
Explanation: 

Detailed explanation-1: -(C) The use of air bags in automobiles has increased by 30 percent over the past five years. (D) Most fatal automobile accidents involving children under age four occur in the driveway of their home. (E) The number of teenage drivers has increased by 30 percent over the past five years.

Detailed explanation-2: -Air bags reduce the chance that your upper body or head will strike the vehicle’s interior during a crash. To avoid an air-bag-related injury, make sure you are properly seated and remember-air bags are designed to work with seat belts, not replace them. And children under 13 should sit in the back seat.

Detailed explanation-3: -Vehicles manufactured in the country have to comply with relevant Indian Standards (IS) and Automotive Industry standards (AIS). Indian Standards are being issued since the late 1960s and these standards for Automotive Components were based on EEC/ISO/DIN/BSAU/FMVSS, etc. at that time.

Detailed explanation-4: -The automotive and vehicle regulations in India are governed by the Ministry of Road Transport and Highways (MoRT&H) which is the nodal ministry for regulation of the automotive sector in India.

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