2. Italians in America According to a theory suggested in the chapter, people dr

Question

2. Italians in America According to a theory suggested in the chapter, people drive smaller cars in Italy than in the United States not because of different preferences but because they face different constraints on their opportunities-higher gasoline prices, narrower streets, and so on. On the basis of that theory what prediction would you make about the cars driven by Italians who move to the United States? What kind of observations would you suggest to test whether preferences or constraints are the key factor in the choice of car size?

Explanation / Answer

According the theory, if the cars driven by the Italians move to United States then there be less traffic jams as the streets of US will be bigger than Italy and large number of Cars can move simultaneously as the cars are smaller and even the rate of accident will be less,

I think here according tthe theory constraints was the key factor for the choice of car size because one may have preference of a big size but due to the narrow streets of Italy and the higher gasoline price etc people of Italy could not do that

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