Limitless

Source: https://cdn.images.express.co.uk/ 

The economic principle I’m exploring is  Institutions are the “rules of the game” that influence choices. My research question to help me study the economic principle is: How do government regulations affect the cars we choose to drive and how we drive them?

 The article/video/etc published in Investopedia titled “How much impact does government regulation have on the automotive sector?” demonstrates this economic principle because it shows How much impact does government regulation have on the automotive sector?

First, the government set rules and regulations to cars so that manufactures can make safer cars for the public. In the article it says that the “1953 Mercury Monterey had a rigid steering column and sharp levers on the heating system that could potentially impale a driver on impact.” By having rules that made the steering column less stiff and heating systems without sharp levers, it limits how far designers should design their cars.

Another way government limits what designers can do is increased standard for fuel economy. For example, government regulates plan to set the fuel economy to 54.5 gallons by 2025. This means that cars will become more efficient but will limit the size and power of an engine.

 Second, emission is another factor. By limiting the amount emission of vehicles, it can costs manufactures to test and develop. Some manufacturers even go to the extent of having plug in hybrids and can limit car engine size. Although the people who buy them pay for those expenses, the environmental issues are still a big problem.

 In conclusion, companies rely on these designs to sell cars but government limits prevent cars from becoming to wild and perform safely for you average consumers. If not for these regulations, cars could drive like crazy with some obscene mileage like 2 miles per gallon. But some people say these regulations prevent companies from going their full potential. What would cars look like without these limits?

 In my next blog post I will research: How do government emissions standards affect what type of cars/fuel manufacturers?