econ problem set 2

econ problem set 2 - Josh Mittleman Econ 103 Sect. B Prof...

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Josh Mittleman Econ 103 Sect. B Prof Friedman Fall 2007 1. a. It is efficient for old people to drive sometimes, while it is inefficient other times. If the person lives in a city, then it is inefficient. If the person lives in a suburb, or any area where there is little public transportation, then it is efficient for them to drive. In the less crowded areas it is efficient because they need a way to get around. In cities there are a lot of buses and taxis so it is not efficient for them to have a car. The driving is harder as well so they would be liabilities towards accidents to other drivers. In the suburbs there are much less people and drivers so it wouldn’t be as probable that they would cause an accident. b. When deciding to drive, old people usually don’t consider the social efficiency of their actions. They are usually stubborn and don’t want anything to change. They feel that because they have been doing something their whole life, such as driving, that they should be allowed to do it forever. They don’t want to come to terms with the fact that they are getting older and their reflexes are slowing, or their eyesight is going. They just don’t want things to change so therefore they don’t even consider stopping. c. As individuals, we could stop our parents and relatives from driving once we see that they cannot drive safely. This is hard for a person to do to their parent and that’s why most people don’t do it. They don’t want to go face to face with them and risk getting into a fight. d.
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econ problem set 2 - Josh Mittleman Econ 103 Sect. B Prof...

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