Two of the main topics we studied in this economics class were opportunity cost and incentives. Choose one of the two topics below and respond to the questions.
- The humorist, P.J. ORourke, said (tongue in cheek) that if we want to stop drivers from tailgating we should weld 6 steel spikes in the center of steering wheels pointing back at the driver.
- Why does he think this would reduce tailgating?
- Is his analysis based on opportunity cost or incentives? Explain.
- Someone once said that economics tells us that disease should not be 100% eliminated from the earth.
- Why would anyone think that disease should not be completely eliminated?
- Is this analysis based on opportunity cost or incentives? Explain.
