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Suppose the Marginal Benefit Per Dollar Spent on Having Uniformed

Question 99

Multiple Choice

Suppose the marginal benefit per dollar spent on having uniformed officers walk a beat in the inner city is $7,000 while the marginal benefit per dollar spent on having undercover officers infiltrate drug rings is $6,000. This suggests that in terms of its budget:


A) the city needs to reallocate resources so more dealers are arrested.
B) the city needs to reallocate resources so more drug rings are infiltrated.
C) the city is currently spending money efficiently as both activities generate positive net benefits.
D) the city needs to reallocate its resources so more officers walk a beat.

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