Should the Government Require Airbags?Technological advances continuously provide new high-tech options to save lives that add to the price of cars. Such devices include cameras, radar, and airbags. Airbag advocates say airbags will save lives and the government should require them in all cars. Airbags add an estimated $600 to the cost of a car, compared to about $100 for a set of regular seat belts. Opponents argue that airbags are electronic devices subject to failure and have produced injuries and death. For example, airbags have killed both adults and children whose heads were within the inflation zone at the time of deployment. Opponents therefore believe the government should leave the decision of whether to spend an extra $600 or so for airbags to the consumer. They further argue that the role of the government should be limited to providing information on the risks of having versus not having airbags.

In the following table, indicate whether each argument adapted from this case is an example of positive economics or normative economics.

Argument

Positive Economics

or

Normative Economics

The government should leave the decision of whether to spend an extra $600 or so for airbags to the consumer.

Airbags add an estimated $600 to the cost of a car, compared to about $100 for a set of regular seat belts.