Deck 8: Crime and Drugs: a Modern Dilemma

Question 1

Prohibition will decrease the amount of money that addicts spend on illegal drugs.

Answer 1

False

Question 2

U.S. drug policies may have resulted in the recruitment of youth for the purpose of selling drugs.

Answer 2

True

Question 3

Free riders can cause an inefficient level of a public good to be provided.

Answer 3

True

Question 4

Crime rates have fallen since 1980.

Question 5

The efficient level of public safety would be provided by private firms.

Question 6

If the marginal social cost of crime control is less than the marginal social benefit of crime control, then the quantity of crime control should be increased.

Question 7

A free rider uses the goods or services provided by others without paying for them.

Question 8

It is not clear that prohibition decreases either drug use or drug abuse.

Question 9

Property rights protection requires the use of coercion. Many people believe coercive powers should be reserved for representative government.

Question 10

Prohibition has significantly increased the cost of drugs because of the cartelization of smuggling drugs and the increased risk of providing the drug.

Question 11

One unintended consequence of drug prohibition is the creation of criminals.

Question 12

According to the morality argument against drug use, the government should prohibit the use of mind-altering drugs only if they are physically harmful to the individual.

Question 13

Prohibition increases drug use because drug pushers use tactics such as giving drugs away in an attempt to create a market of dependent individuals.

Question 14

It takes less resources to reduce crime by a given amount if the crime rate is already low than to reduce it by the same amount if the crime rate is high.

Question 15

Prohibition of drugs may impose costs on society by decreasing the number of property crimes committed.

Question 16

Generally, public goods are provided more efficiently by private firms than by the government.

Question 17

Legalization of marijuana would result in a price increase due to government taxation.

Question 18

The efficient level of crime control is provided when the marginal social benefit of crime control equals the marginal social cost of crime control.

Question 19

An economic approach to crime control implies that government can control crime, particularly property crime, because it can create conditions in which crime does not pay.

Question 20

The marginal social cost of crime control decreases as additional units of control are provided.

Question 21

The marginal social benefit of crime control:

A) increases as additional units are provided.
B) decreases as additional units are provided.
C) is constant as additional units are provided.
D) increases as additional units are provided, but increases at a decreasing rate.

Question 22

The marginal cost of providing a public good to an additional user is:

A) negligible.
B) zero.
C) increasing as the number of users increases.
D) quite large, which is why government must provide the good.

Question 23

Efficiency dictates that:

A) society be crime free.
B) there be some positive level of crime.
C) resources be used to eliminate crime in the inner city.
D) cities direct more resources to crime prevention.

Question 24

Many feel that government should provide property rights because:

A) monopoly provision of property rights is relatively more expensive than competition.
B) provision of property rights requires coercion.
C) the cost of providing property rights to additional individuals increases.
D) property rights are a rival good.

Question 25

Some individuals argue for the legalization of drugs on the basis that legalization would:

A) decrease organized criminal activity.
B) increase property crimes.
C) result in more corruption of police officials.
D) impose significant third party-effects on society.

Question 26

Some people argue that prohibition:

A) restricts the freedom of informed adults to make their own decisions.
B) can result in the contamination of the illegal substance.
C) can decrease the amount of resources devoted to the control on non-drug crimes.
D) All of the above.

Question 27

Hawks would be willing to trade increased drug use for a decrease in the spread of HIV infection.

Question 28

Drug enforcement would be more efficient if officials followed the equimarginal principle in allocating money among different enforcement activities.

Question 29

Although owls would retain prohibition, bold, demand-side intervention is the core of their policy.

Question 30

Which of the following is characteristic of a public good?

A) A public good is produced by the government sector.
B) It is relatively easy to prevent people from consuming the good.
C) Consumption of a public good by one individual does not decrease the quantity of the good available for other individuals to consume.
D) A public good is excludable.

Question 31

The marginal social cost of crime control increases because:

A) the opportunity cost of additional resources devoted to crime control decreases.
B) the lower the crime rate, the smaller the amount of resources that must be used to reduce the crime rate by any given amount.
C) as the crime rate decreases, further reductions in crime may result in reductions in civil liberties.
D) the probability of being a victim of crime decreases as more crime control is provided.

Question 32

Which of the following statements concerning crime control is correct?

A) For efficiency, the provision of crime control should occur at the point where marginal social benefit exceeds marginal social cost.
B) For efficiency, the provision of crime control should occur at the point where marginal social cost exceeds marginal social benefit.
C) Society should allocate resources so the crime rate eventually falls to zero.
D) A crime rate of zero would probably be inefficient.

Question 33

If demand for drugs is very responsive to changes in price, then increased enforcement will increase expenditures on drugs.

Question 34

The free rider problem refers to:

A) a situation in which individuals who benefit from a good or service do not pay for it.
B) a situation in which individuals attempt to persuade government to provide goods and services to them at no cost or at a reduced price.
C) a situation in which legislators enact inefficient programs in order to receive the political support of lobbyists.
D) a situation in which some individuals provide basic necessities for other individuals who are financially unable to provide the necessities for themselves.

Question 35

The legalization of drugs would likely result in:

A) relatively large increases in supply and relatively smaller increases in demand.
B) relatively small increase in supply and relatively larger increases in demand.
C) relatively large decreases in supply and relatively small increases in demand.
D) relatively small decreases in both supply and demand.

Question 36

Government provision of public goods is probably more efficient than private provision because:

A) the nonexcludable nature of public goods would force private firms to engage in costly monitoring in order to know what to charge each individual for use of the good.
B) a private firm would charge a price for providing the good to additional users, while efficiency would dictate the additional users be allowed to consume the good free of charge.
C) the free rider problem may result in less than the efficient amount of the good being provided by private firms.
D) All of the above.

Question 37

The efficient level of crime control occurs:

A) where the marginal social benefit and the marginal social cost curves intersect.
B) when the marginal social benefit and the marginal social cost of crime control are equal.
C) when the amount people are willing to spend for an additional unit of crime control is equal to the cost of providing the additional unit.
D) All of the above.

Question 38

The marginal social cost of crime control:

A) increases as additional units are provided.
B) decreases as additional units are provided.
C) is constant as additional units are provided.
D) is zero as additional units are provided.

Question 39

Why might the marginal social benefit of crime control decrease as additional units are provided?

A) The feeling of security increases as more crime control is provided, therefore people are willing to pay more for additional units.
B) The opportunity cost of crime control decreases as more is provided, therefore people are willing to spend less for additional units.
C) As people feel safer because of more crime control, they do not place as great a value on a little more safety.
D) The opportunity cost of crime control increases as more is provided, however, people are willing to spend more for additional units.

Question 40

Which of the following is true of a public good?

A) A public good is nonexcludable.
B) A public good is nonrival.
C) Government provision is probably the most efficient method of providing a public good.
D) All of the above.

Question 41

Which is correct about the Dutch drug policy versus the U.S. drug policy?

A) Dutch law distinguishes between soft drugs (like marijuana) and hard drugs (like cocaine).
B) Possession and distribution of drugs is not illegal in the Netherlands.
C) It is legal to sell drugs to minors under 18 in the Netherlands.
D) All of the above are true.

Question 42

Many people argue that legalization of drugs would result in:

A) increased birth defects.
B) increased criminal activity.
C) greater family stability as drug users would no longer be stigmatized.
D) more hospital admissions as hospitals would have more drug-related violence to deal with.

Question 43

The equimarginal principle states that:

A) the benefit of all activities undertaken should be equal.
B) at the margin, the cost incurred by undertaking any activity should be at least equal to its benefit.
C) the last dollar spent on one activity should give the same marginal benefit as the last dollar spent on any other activity.
D) the marginal cost of all activities should be equal.

Question 44

Which statement is correct?

A) Crime rates of all kinds have plummeted in England since 1980.
B) England has allocated more resources toward crime control since 1980.
C) Crime rates are lower in the U.S. than in England.
D) All of the above.

Question 45

In the case of addicts, prohibition will:

A) tend to increase the revenues of drug dealers due to increased expenditures on drugs.
B) tend to decrease the revenues of drug dealers due to decreased expenditures on drugs.
C) initially decrease the revenues of drug dealers, but in the long run these revenues will increase as users adapt to the higher drug prices.
D) cause a relatively large decrease in the output that drug dealers are able to sell.

Question 46

Which of the following is the best example of a public good?

A) a McDonald's Big Mac.
B) security provided to a government official.
C) crime protection provided to a town.
D) a housing addition.

Question 47

As a result of the prohibition of drugs:

A) the supply of drugs will increase.
B) the demand for drugs will decrease.
C) drugs will contain fewer toxic substances.
D) All of the above.

Question 48

Some people argue that legalizing drugs would:

A) result in significant third-party effects.
B) result in increased criminal activity.
C) lower birth defects.
D) decrease insurance rates.

Question 49

Which statement is correct?

A) England has doubled its resources spent on crime control, and as a result, crime rates have fallen.
B) England has substantially increased resources spent on crime control, but crime rates have remained stable or increased.
C) Crime rates have remained stable or increased in England, and some believe that reduced punishment is the reason.
D) England and the U.S. have had similar experiences with respect to crime control since 1981.

Question 50

Hawks advocate:

A) strict enforcement of drug laws.
B) allowing adults to make informed decisions about drug use without government interference.
C) emphasizing demand-side intervention to stop drug use.
D) decreasing social ills at the expense of increased drug use.

Question 51

Why might prohibition lead to an increase in the price of drugs?

A) Restriction of output.
B) Increased risk of punishment.
C) Decreased supply.
D) All of the above.

Question 52

Which of the following is the best example of a private good?

A) a computer.
B) property rights.
C) a legal system.
D) a national highway system.

Question 53

Which of the following statements is correct?

A) Because the penalties are similar for smuggling cocaine and marijuana, the attraction of smuggling cocaine may have increased.
B) The severity of drug laws has encouraged individuals to deal more diluted forms of drugs such as cocaine.
C) Laws have increased the amount of resources available to deal with nondrug crimes.
D) The relative price of marijuana decreased throughout the 1980s.

Question 54

According to the doves:

A) drugs have no socially redeeming value, and strict enforcement of the drug laws should continue.
B) drug use results from bad social situations.
C) adults given appropriate information make informed choices about drugs and government should not interfere.
D) drug use exhibits a lack of concern for others.

Question 55

Which of the following is the best example of a public good?

A) a McDonald's Big Mac.
B) a pair of shoes.
C) a lighthouse.
D) a television.

Question 56

In general, drug prohibition:

A) tends to increase drug use as drug pushers entice customers into drug use.
B) tends to decrease drug use as drug prices increase.
C) tends to cause drug prices to fall as a result of decreased drug use.
D) tends to make drugs more attractive to adults because of the psychological need for adults to rebel against established societal norms.

Question 57

In the case of a recreational user, prohibition will:

A) cause a large drop in the quantity of drugs demanded.
B) cause a small drop in the quantity of drugs demanded.
C) cause the revenues of drug dealers to fall.
D) None of the above.

Question 58

The owls policy position is characterized by:

A) bold, demand-side intervention to stop drug use.
B) achieving social goals such as decreased HIV infection even if at the expense of increased drug use.
C) the desire to keep young people away from drugs.
D) All of the above.

Question 59

Which of the following might be considered an undesirable consequence of drug prohibition?

A) A decrease in drug abuse.
B) The creation of criminals.
C) A decrease in the profits of drug cartels.
D) A decrease in the number of babies born addicted to drugs.

Question 60

Prohibition will cause a relatively large decrease in the quantity of drugs demanded:

A) if users are addicts.
B) if drug use is nonrecreational.
C) if drug use is recreational.
D) if users do not respond much to a change in the price of drugs.

Question 61

Suppose that at the current level of crime control MSB = $350 whileMSC = $500. We know that:

A) there should be no change in the quantity of crime control.
B) the quantity of crime control should be increased.
C) the quantity of crime control should be decreased.
D) the quantity of crime control should be temporarily decreased and then returned to its original level.

Question 62

Use the following diagram to answer the following questions.

Refer to Nirvana. Suppose a new drug, nirvana, were made illegal. We would expect:

A) supply to change from S₁ to S₂.
B) demand to change from D₂ to D₁.
C) supply to change from S₂ to S₁.
D) None of the above.

Question 63

Use the following diagram to answer the following questions.

Refer to Crime Control. If the quantity of crime control is currently represented by A₁, then:

A) the marginal social benefit exceeds marginal social cost and the level of crime control should be decreased.
B) the marginal social cost exceeds marginal social benefit and the level of crime control should be decreased.
C) the marginal social benefit exceeds marginal social cost and the level of crime control should be increased.
D) the marginal social cost exceeds marginal social benefit and the level of crime control should be increased.

Question 64

"Drug use is wrong because it is immoral and it is immoral because it enslaves the mind and destroys the soul. In this case, government has a responsibility for prohibiting the use of mid-altering drugs, regardless of whether drug-users are fully responsible and of the absence of involuntary harm to others." This is an example of:

A) the libertarian principle.
B) paternalism.
C) dove philosophy.
D) the morality argument.

Question 65

If a new drug, crash, were made illegal there would likely be a large decrease in supply because:

A) there will be a large decrease in the nonprice cost of the drug.
B) smuggling the drug will likely take place under a cartel, thereby decreasing costs.
C) a lack of government-enforced property rights increases risks.
D) many drug dealers get a thrill from engaging in illegal activities.

Question 66

Suppose the marginal social benefit of the last unit of crime control in Metropolis is $48,500 per year while the marginal social cost of the last unit of crime control is $35,000 per year. In this instance the city should:

A) cut back on crime control as the quantity of crime control currently exceeds the efficient level.
B) expand crime control as the quantity of crime control is currently less than the efficient level.
C) hire additional officers as long as the marginal social benefit associated with the marginal unit is greater than zero.
D) hire additional officers until the marginal social benefit associated with the marginal unit is zero.

Question 67

Suppose government were to legalize the use of cocaine. As a result of this action there is likely to be:

A) a decrease in the number of property crimes because it will cost less to purchase the drug.
B) a decrease in organized criminal activity associated with the drug trade.
C) a reallocation of resources away from drug crime control.
D) All of the above.

Question 68

Use the following diagram to answer the following questions.

Refer to Nirvana. Suppose a new drug, nirvana, were made illegal. We would expect:

A) price to fall to P₁.
B) price to increase to P₂.
C) quantity to increase to Q₂.
D) price will increase to P₃.

Question 69

Suppose that at the current level of crime control MSB = $250 whileMSC = $200. We know that:

A) there should be no change in the quantity of crime control.
B) the quantity of crime control should be increased.
C) the quantity of crime control should be decreased.
D) the quantity of crime control should be temporarily decreased and then returned to its original level.

Question 70

Use the following diagram to answer the following questions.

Refer to Nirvana. Suppose a new drug, nirvana, were made illegal. We would expect:

A) quantity to fall to Q₁.
B) price to increase to P₃.
C) quantity to fall to Q₂.
D) price will fall to P₁.

Question 71

Suppose that prohibition causes the price of marijuana to increase from $5.00 per ounce to $40.00 per ounce. Which of the following is most likely responsible for this increase?

A) Prohibition causes a decrease in demand for marijuana.
B) As a result of prohibition, the purity of the drug bought by consumers is questionable.
C) Prohibition causes a decrease in supply due to the increased risk associated with selling the drug.
D) Prohibition will probably cause the sale of marijuana to take place in more competitive markets as numerous dealers will emerge to take advantage of the profits that can be made through illegal sales.

Question 72

Which of the following would likely result if the use of a new drug, "euphoria," were made illegal?

A) An increase in the demand for "euphoria."
B) A decrease in the supply of "euphoria."
C) A decrease in the price of "euphoria."
D) Less organized criminal activity associated with the trade of "euphoria."

Question 73

Suppose that at the current level of crime control MSB = $500 whileMSC = $500. We know that:

A) there should be no change in the quantity of crime control.
B) the quantity of crime control should be increased.
C) the quantity of crime control should be decreased.
D) the quantity of crime control should be temporarily decreased and then returned to its original level.

Question 74

"Individuals do not always know their own best interest. We should keep drug prohibitions in force so that people do not harm themselves." This is an example of:

A) the libertarian principle.
B) paternalism.
C) dove philosophy.
D) owl philosophy.

Question 75

Your neighborhood association votes to institute a Neighborhood Watch program. You refuse to participate, but receive the benefit of this extra protection because you live in the neighborhood. Your behavior is an example of:

A) the special interest effect.
B) the free rider problem.
C) a positive externality.
D) a negative externality.

Question 76

Use the following diagram to answer the following questions.

Refer to Crime Control. If the quantity of crime control is currently represented by A₂, then:

A) the marginal social benefit exceeds marginal social cost and the level of crime control should be decreased.
B) the marginal social cost exceeds marginal social benefit and the level of crime control should be decreased.
C) the marginal social benefit equals marginal social cost and the level of crime control should be increased.
D) the marginal social cost equals marginal social benefit and the level of crime control should remain the same.

Question 77

Use the following diagram to answer the following questions.

Refer to Crime Control. The efficient level of crime control is:

A) A₁.
B) A₂.
C) A₃.
D) Cannot be determined from the information given.

Question 78

Suppose the marginal benefit of employing an additional police officer in efforts to decrease marijuana abuse in Suburbia is $15,000 per year while the marginal cost is $35,500. In this instance the city should:

A) probably hire the additional officer as the city gets a benefit of $15,000.
B) probably not hire the additional officer as the city incurs as cost of $35,500.
C) probably hire the additional officer as the city gets a net benefit of $20,500.
D) probably not hire the additional officer as the city incurs a net loss of $20,500.

Question 79

"Responsible individuals should have the right to engage in drug use as long as no substantial, involuntary harm is imposed on a third party." This is an example of:

A) the libertarian principle that favors the legalization of drugs.
B) the relative paternalistic principle that favors the legalization of drugs.
C) a rationalization used by users of drugs in order to justify their actions.
D) an irresponsible argument for drug use often put forth by the press and politicians who envision the generation of substantial governmental revenues as a result of legalization.

Question 80

Use the following diagram to answer the following questions.

Refer to Nirvana. Suppose a new drug, nirvana, were made illegal. We would expect:

A) demand to change from D₂ to D₁.
B) demand to change from D₁ to D₂.
C) supply to change from S₂ to S₁.
D) None of the above.