Question 1

The opportunity cost of a doctor who spends one-half hour performing an abortion might be the $2,000 he could earn during the same amount of time performing an appendectomy.

Accepted Answer

The opportunity cost of any choice is the value of the next best alternative that must be given up. In this case, the opportunity cost of a doctor spending one-half hour performing an abortion is the income he could have earned during that same amount of time if he had chosen to perform an appendectomy instead. Therefore, the statement is true.

Question 2

The negative personal satisfaction received because you have to drive a different car than you would otherwise choose because it is harder to steal is an example of a psychic cost of crimE.

Accepted Answer

Psychic costs refer to the negative psychological or emotional effects that individuals experience as a result of criminal activity, even if they are not directly victimized. In this case, having to drive a different car due to fear of theft can cause personal dissatisfaction or frustration.

Question 3

If you love your job,you are receiving psychic incomE.

Accepted Answer

According to the concept of psychic income, it refers to the non-monetary benefits that an individual receives from their job, such as job satisfaction, a sense of accomplishment, social status, etc. Therefore, if a person loves their job, they are likely to experience psychic income which is a positive non-monetary outcome.

Question 4

The opportunity cost of jail time is what you could have done had you not been in jail.

Accepted Answer

The definition of opportunity cost is the value of the next best alternative forgone when an economic decision is made. In the case of jail time, the opportunity cost is the potential activities and opportunities you could have pursued if you were not in jail.

Question 5

The value of property damage from a crime is an implicit cost of the crimE.

Accepted Answer

The value of property damage from a crime is considered an explicit cost, as it directly measures the monetary loss resulting from the crime.

Question 6

People are more likely to commit crimes if they perceive the probability of getting caught is low.

Accepted Answer

This statement is supported by research on deterrence theory, which suggests that individuals are less likely to engage in criminal behavior if they believe that the costs of the behavior outweigh the perceived benefits. This includes the likelihood of getting caught and facing punishment. Therefore, if an individual believes that the probability of getting caught is low, they may be more likely to commit a crime.

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