Question 1

Suppose a poor person steals $10,000 from a middle income person.Economic analysis tells us that

Accepted Answer

A) There is an economic loss for the society as a whole 
B) There is an economic gain for the society as a whole 
C) A public good will usually be purchased with the money 
D) We cannot be sure whether there is economic gain or loss for the society as a whole 
E) The benefit to the poor person exceeds the cost to the middle income person 
A) There is an economic loss for the society as a whole 
B) There is an economic gain for the society as a whole 
C) A public good will usually be purchased with the money 
D) We cannot be sure whether there is economic gain or loss for the society as a whole 
E) The benefit to the poor person exceeds the cost to the middle income person

Question 2

Society's standards of social values are an important determinant of the level of criminal activity.

Accepted Answer

A) True 
 B)False

Question 3

The Following Questions Refer to the table below.   The cost of each police officer is $20,000; the cost of each patrol car is $10,000.
-The net social benefit of hiring one police officer and buying one patrol car is

Accepted Answer

A) $40,000 
B) $41,000 
C) $80,000 
D) $120,000 
E) $150,000 
A) $40,000 
B) $41,000 
C) $80,000 
D) $120,000 
E) $150,000

Question 4

The Following Questions Refer to the table below.   The cost of each police officer is $20,000; the cost of each patrol car is $10,000.
-If the police department gets an additional allocation of $40,000,how should the money be allocated between police officers and patrol cars?

Accepted Answer

A) 2 police officers; 0 patrol cars 
B) 2 police officers; 1 patrol car 
C) 1 police officer; 1 patrol car 
D) 1 police officer; 2 patrol cars 
E) 0 police officers; 4 patrol cars 
A) 2 police officers; 0 patrol cars 
B) 2 police officers; 1 patrol car 
C) 1 police officer; 1 patrol car 
D) 1 police officer; 2 patrol cars 
E) 0 police officers; 4 patrol cars

Question 5

Psychic income refers to the satisfaction received from attending cultural events like special showings at an art gallery.

Accepted Answer

A) True 
 B)False

Question 6

Government can effectively remedy the free-rider problem by

Accepted Answer

A) Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it 
B) Imposing a tax on automobiles and all other forms of transportation 
C) Eliminating all forms of transportation 
D) Banning private crime prevention activities 
E) None of the above 
A) Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it 
B) Imposing a tax on automobiles and all other forms of transportation 
C) Eliminating all forms of transportation 
D) Banning private crime prevention activities 
E) None of the above

Question 7

Suppose an auto worth $25,000 is stolen.The economic cost of this theft,from society's point of view,does not include

Accepted Answer

A) The $25,000 the auto is worth 
B) The value of the resources expended by society attempting to capture the thief 
C) The value of the inconvenience caused to the owner 
D) The cost of resources used to reduce car theft 
E) All of the above 
A) The $25,000 the auto is worth 
B) The value of the resources expended by society attempting to capture the thief 
C) The value of the inconvenience caused to the owner 
D) The cost of resources used to reduce car theft 
E) All of the above

Question 8

According to the equimarginal principle,a city's crime prevention budget should be allocated such that

Accepted Answer

A) The last dollar spent on detection and apprehension of criminals should yield the same addition to people's benefits as the last dollar spent determining guilt or innocence and the last dollar spent on corrections and punishment 
B) Total benefits of crime prevention are equal to total costs 
C) Expenditure on court services proceeds exceed those on the police force because services of a lawyer are more expensive than those of a policeman or policewoman 
D) The same number of police officers patrol each square block at the margins of the city's residential area 
E) The same number of police officers are used per square block in the city's suburbs as in its downtown area 
A) The last dollar spent on detection and apprehension of criminals should yield the same addition to people's benefits as the last dollar spent determining guilt or innocence and the last dollar spent on corrections and punishment 
B) Total benefits of crime prevention are equal to total costs 
C) Expenditure on court services proceeds exceed those on the police force because services of a lawyer are more expensive than those of a policeman or policewoman 
D) The same number of police officers patrol each square block at the margins of the city's residential area 
E) The same number of police officers are used per square block in the city's suburbs as in its downtown area

Question 9

The equimarginal principle is satisfied when we spend the same amount of money on the police,courts,and prisons.

Accepted Answer

A) True 
 B)False

Question 10

The criminality of specific acts can be ascertained by evaluating their morality or immorality.

Accepted Answer

A) True 
 B)False

Question 11

In the United States,the federal government spends more for corrections than state and local governments.

Accepted Answer

A) True 
 B)False

Question 12

The free-rider problem refers to

Accepted Answer

A)  Those who receive the benefits of a public good without paying a part of its cost 
B)  Those who ride public transportation without paying their fares 
C)  Those who ride in rodeos and do not win prizes 
D)  Jockeys who are not paid 
E)  None of the above 
A)  Those who receive the benefits of a public good without paying a part of its cost 
B)  Those who ride public transportation without paying their fares 
C)  Those who ride in rodeos and do not win prizes 
D)  Jockeys who are not paid 
E)  None of the above

Question 13

The Following Questions Refer to the graph below.  
-If the market for marijuana changes from illegal to legal,supply will

Accepted Answer

A) Increase 
B) Decrease 
C) Shift to the left 
D) Not be affected 
E) Become steeper 
A) Increase 
B) Decrease 
C) Shift to the left 
D) Not be affected 
E) Become steeper

Question 14

Aggravated assault is an example of a(n)

Accepted Answer

A) Violent crime 
B) Crime against property 
C) Illegal trafficking of goods and services 
D) "other" crime 
E) None of the above 
A) Violent crime 
B) Crime against property 
C) Illegal trafficking of goods and services 
D) "other" crime 
E) None of the above

Question 15

In any city with a given crime prevention budget,additional suppression of prostitution

Accepted Answer

A) Will necessarily result in unemployment 
B) Is always economically and morally defensible 
C) Is never defensible economically or morally 
D) Will usually be achieved at the expense of an increase in other kinds of crime 
E) All of the above 
A) Will necessarily result in unemployment 
B) Is always economically and morally defensible 
C) Is never defensible economically or morally 
D) Will usually be achieved at the expense of an increase in other kinds of crime 
E) All of the above

Question 16

Which of the following statements is false?

Accepted Answer

A) The government in a private enterprise economy confines its production of goods and services to public goods 
B) A major difference between private enterprise economic system and a socialistic economic system is that the government of the latter is responsible for the production of most private,as well as public and semi-private,goods 
C) Governments of private enterprise systems leave the bulk of private goods to be produced by private businesses 
D) Governments of private enterprise economies play a relatively important role in the provision of semi-private goods 
E) None of the above 
A) The government in a private enterprise economy confines its production of goods and services to public goods 
B) A major difference between private enterprise economic system and a socialistic economic system is that the government of the latter is responsible for the production of most private,as well as public and semi-private,goods 
C) Governments of private enterprise systems leave the bulk of private goods to be produced by private businesses 
D) Governments of private enterprise economies play a relatively important role in the provision of semi-private goods 
E) None of the above

Question 17

Which of the following will increase the implicit costs of committing a crime?

Accepted Answer

A) Decreased crime prevention expenditures 
B) Decreased probability of getting caught 
C) Improved job opportunities 
D) More lenient sentencing 
E) Less severe penalties 
A) Decreased crime prevention expenditures 
B) Decreased probability of getting caught 
C) Improved job opportunities 
D) More lenient sentencing 
E) Less severe penalties

Question 18

When an individual receives benefits from a business endeavor in the form of personal satisfaction,the benefits are known as

Accepted Answer

A) Opportunity costs 
B) Implicit costs 
C) Psychic costs 
D) Psychic income 
E) Externalities 
A) Opportunity costs 
B) Implicit costs 
C) Psychic costs 
D) Psychic income 
E) Externalities

Question 19

Suppose the total social benefits of crime protection increase from $800,000 to $900,000 and total social costs increase from $650,000 to $800,000,with the addition of another unit of crime prevention services.

Accepted Answer

A) The MSB>MSC and crime prevention activities should be expanded B) The MSB=MSC and the level of crime prevention is optional C) The MSBTSC and crime prevention should be expanded E) None of the above A) The MSB>MSC and crime prevention activities should be expanded B) The MSB=MSC and the level of crime prevention is optional C) The MSBTSC and crime prevention should be expanded E) None of the above

Question 20

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana?

Accepted Answer

A) Concern about social standing 
B) Unemployment 
C) An intense fear of incarceration 
D) A high probability of getting caught 
E) All of the above 
A) Concern about social standing 
B) Unemployment 
C) An intense fear of incarceration 
D) A high probability of getting caught 
E) All of the above

Suppose a poor person steals $10,000 from a middle income person.Economic analysis tells us that

Society's standards of social values are an important determinant of the level of criminal activity.

The Following Questions Refer to the table below. The cost of each police officer is $20,000; the cost of each patrol car is $10,000. -The net social benefit of hiring one police officer and buying one patrol car is

The Following Questions Refer to the table below. The cost of each police officer is $20,000; the cost of each patrol car is $10,000. -If the police department gets an additional allocation of $40,000,how should the money be allocated between police officers and patrol cars?

Psychic income refers to the satisfaction received from attending cultural events like special showings at an art gallery.

Government can effectively remedy the free-rider problem by

Suppose an auto worth $25,000 is stolen.The economic cost of this theft,from society's point of view,does not include

According to the equimarginal principle,a city's crime prevention budget should be allocated such that

The equimarginal principle is satisfied when we spend the same amount of money on the police,courts,and prisons.

The criminality of specific acts can be ascertained by evaluating their morality or immorality.

In the United States,the federal government spends more for corrections than state and local governments.

The free-rider problem refers to

The Following Questions Refer to the graph below. -If the market for marijuana changes from illegal to legal,supply will

Aggravated assault is an example of a(n)

In any city with a given crime prevention budget,additional suppression of prostitution

Which of the following statements is false?

Which of the following will increase the implicit costs of committing a crime?

When an individual receives benefits from a business endeavor in the form of personal satisfaction,the benefits are known as

Suppose the total social benefits of crime protection increase from $800,000 to $900,000 and total social costs increase from $650,000 to $800,000,with the addition of another unit of crime prevention services.

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana?

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

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Exam 5: Economics of Crime and Its Prevention: How Much Is Too Much

Suppose a poor person steals $10,000 from a middle income person.Economic analysis tells us that

Society's standards of social values are an important determinant of the level of criminal activity.

The Following Questions Refer to the table below. The cost of each police officer is $20,000; the cost of each patrol car is $10,000. -The net social benefit of hiring one police officer and buying one patrol car is

The Following Questions Refer to the table below. The cost of each police officer is $20,000; the cost of each patrol car is $10,000. -If the police department gets an additional allocation of $40,000,how should the money be allocated between police officers and patrol cars?

Psychic income refers to the satisfaction received from attending cultural events like special showings at an art gallery.

Government can effectively remedy the free-rider problem by

Suppose an auto worth $25,000 is stolen.The economic cost of this theft,from society's point of view,does not include

According to the equimarginal principle,a city's crime prevention budget should be allocated such that

The equimarginal principle is satisfied when we spend the same amount of money on the police,courts,and prisons.

The criminality of specific acts can be ascertained by evaluating their morality or immorality.

In the United States,the federal government spends more for corrections than state and local governments.

The free-rider problem refers to

The Following Questions Refer to the graph below. -If the market for marijuana changes from illegal to legal,supply will

Aggravated assault is an example of a(n)

In any city with a given crime prevention budget,additional suppression of prostitution

Which of the following statements is false?

Which of the following will increase the implicit costs of committing a crime?

When an individual receives benefits from a business endeavor in the form of personal satisfaction,the benefits are known as

Suppose the total social benefits of crime protection increase from $800,000 to $900,000 and total social costs increase from $650,000 to $800,000,with the addition of another unit of crime prevention services.

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana?

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

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