1. In each of the three scenarios presented in the case, opponents and proponents have divergent views of government regulations. One view is on the public benefit, the other is on the cost to private industry. How can you decide which view to accept?
2. In each of the scenarios above, identify the benefits versus the costs for both viewpoints.
3. Should the government intervene in setting regulations to increase security and help the environment? Or should private industry take on this role? Discuss.
Answers
Answer:
The three scenarios presented in the case are: A. Increased surveillance at the airports Cost : Increase in waiting time leading to more time allocated to one trip leading to more cost per trip leading to lesser profits, Benefits : In case of outgoing passengers there will be reduced chances of terrorist infiltration at airports leading to reduced or no damage to the airport property leading to reduced or no damage to aeroplanes leading to safety of citizens of the United Sates. In case of incoming passengers it can also reduce chances of terrorists infiltering into the country with deadly explosives and causing damage on mass scale. B. Setting up new engines as per the guidelines of the EPA Costs :Increased cost of motor on account of provision of enhanced motor engines & higher maitenance costs. Benefits : Cleaner and greaner environment leading to health benefits for the citizens of the United States C. Increase in inspections of the cargos at the USports Costs : Increase in congestion at the...
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