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

Question 1

An immoral act is

A)Easy to define
B)Always illegal
C)Different in different societies
D)Defined consistently across the United States
E)All of the above

Answer 1

C

Question 2

Aggravated assault is an example of a(n)

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

Answer 2

A

Question 3

Which of the following statements is correct?

A)Criminal acts are illegal acts whether or not those acts are immoral
B)Some immoral acts are criminal acts and some are not
C)Some acts are criminal because they lead to consequences the criminal is unaware of
D)Some acts that might result in chaotic conditions are made criminal by legislative bodies
E)All of the above

Answer 3

E

Question 4

Prostitution is an example of a(n)

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

Question 5

Which of the following statements is false?

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 6

From an economic point of view,crime prevention activities should be expanded to the point at which

A)Their marginal social benefit no longer exceeds their marginal social cost
B)All crime is stamped out
C)All crimes against persons are eliminated
D)Their total gross benefits are maximum
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

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

Arson is an example of a(n)

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

Question 9

A characteristic of a public good or service is

A)That no individual can identify specifically the part of it that he or she consumes
B)Once the good is provided,it is difficult or impossible to exclude anyone from using it
C)If it is provided privately,it generates a "free-rider" problem
D)One person's use does not decrease the quantity available for others
E)All of the above

Question 10

The free-rider problem

Question 11

A group project has been assigned and most of the work ends up being produced by only one or two of the group's members.This is an example of

A)The free-rider problem
B)Diminishing marginal returns
C)The opportunity cost principle
D)Equimarginal principle
E)An immoral act

Question 12

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

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 13

The marginal cost of a good is

A)The change in total product associated with the change in resource inputs
B)The average cost of the product
C)The total cost of the good divided by output
D)The change in total cost per unit change in output
E)None of the above

Question 14

The costs of resources used in crime prevention

A)Are equal to the value those resources would have provided in their best alternative use
B)Are equal to the value of these resources in reducing crime
C)Can be approximated by the expenditures on criminal activities
D)Both (a)and (c)
E)All of the above

Question 15

Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost?

A)Free-riding
B)A negative externality in consumption
C)A negative externality in production
D)Implicit costs
E)Psychic costs

Question 16

Which of the following goods or services is a public good?

A)Polio immunization
B)Stamp collection
C)A smoke detector
D)National defense
E)A burglar alarm

Question 17

Illegal acts are

A)Also immoral
B)Ones that society has determined that it is better off allowing
C)Designated as such by the criminal justice system
D)Prevented once a law is passed
E)All of the above

Question 18

Which of the following is most likely a public good?

A)A college education
B)A smoke detector
C)Smallpox immunization
D)Elementary education
E)Space exploration

Question 19

Immunization for polio is an example of a(n)

A)Semi private good
B)Public good
C)Private good
D)Good which the market will efficiently produce
E)Externality in production

Question 20

Government can effectively remedy the free-rider problem by

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 21

An additional expenditure on crime prevention should be allocated to the activity where

A)MSB is greatest
B)MSC is lowest
C)TSB is greatest
D)TSC is lowest
E)TSC is highest

Question 22

The Following Questions Refer to the table below.
As more crime prevention is added,the MSB of crime prevention

A)Increases
B)Decreases
C)Becomes higher than MCS
D)Does not change
E)Is more difficult to determine

Question 23

If increasing police patrols in a neighborhood requires paying officers overtime,then the marginal cost of additional police patrols

A)Increases
B)Decreases
C)Equals MSB
D)Must fall before it is efficient to have more patrols
E)Are too high

Question 24

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 the third patrol car is

A)$11,000
B)$15,000
C)$20,000
D)$36,000
E)$45,000

Question 25

If society receives no additional benefit from increasing crime prevention activities,the MSB of crime prevention

A)Equals 0
B)Is increasing
C)Is decreasing
D)Is equal to the MSC of crime prevention
E)Must rise in the long run.

Question 26

The Following Questions Refer to the table below.
The marginal social cost of the fourth unit of crime prevention is

A)270
B)180
C)160
D)90
E)60

Question 27

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 total budget is $100,000,what is the most efficient allocation of the crime prevention budget?

A)1 police officer; 8 patrol cars
B)2 police officers; 6 patrol cars
C)3 police officers; 4 patrol cars
D)4 police officers; 2 patrol cars
E)5 police officers; 0 patrol cars

Question 28

Additional expenditures should not be made on police protection if the additional cost of police protection

A)Is less than the additional benefit
B)Would increase the MSB of fire protection by more
C)Is more than the change total social benefits as a result of the additional police protection
D)Would cause a larger increase in total social benefits if spent elsewhere
E)Is all of the above

Question 29

The Following Questions Refer to the table below.
The efficient number of units of crime prevention is

A)1
B)2
C)3
D)4
E)5

Question 30

The Following Questions Refer to the table below.
The marginal social benefit of the third unit of crime prevention is

A)200
B)180
C)160
D)140
E)90

Question 31

Which of the following is not an economic cost of crime? The

A)Lost earnings of victims of crime
B)Value of property destroyed by criminal activities
C)Dollars spent on illegal drugs
D)Tax dollars spent on crime prevention
E)Suffering experienced by crime victims

Question 32

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 total benefit of hiring three police officers is

A)$18,000
B)$48,000
C)$60,000
D)$148,000
E)$249,000

Question 33

If the private benefit of buying a car alarm is $250 and the social benefit of the car alarm is $350,is it optimal for you to buy a car alarm if it costs $300?

A)Yes,because benefits exceed the cost
B)Yes,because MSB > MSC
C)No,because private benefits are less than private cost
D)No,because MPB < MSC
E)The outcome is the same whether you buy the alarm or not

Question 34

Marginal social benefits of crime prevention activities

A)Are the increase in the value of such activities to the community resulting from a one-unit increase in such activities
B)Are difficult to calculate
C)Usually decrease with additional units of those activities
D)Include a decrease in the suffering of crime victims
E)All of the above

Question 35

Police officers should be hired up to the point where

A)The public feels safe in their homes
B)The crime rate falls to zero
C)The benefit of the last officer hired is just equal to what its cost to hire her
D)The benefit of the last officer hired exceeds the cost
E)It is not possible to tell without further information

Question 36

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.

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 MSBD)The TSB>TSC and crime prevention should be expanded
E)None of the above

Question 37

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?

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 38

Economic analysis of crime can

A)Determine what activities should be considered illegal
B)Determine what the economic impact will be of making certain activities illegal
C)Tell us which activities should be punishable
D)Tell us how much it will cost to eliminate crime
E)Do all of the above

Question 39

The Following Questions Refer to the table below.
The net benefit of an additional unit of crime prevention to society is highest with how many units of crime prevention?

A)0
B)1
C)3
D)5
E)6

Question 40

Assume police officers and prison guards earn $30,000.Hiring a police officer changes the total benefits of crime prevention from 100 to 120,while hiring a prison guard increases total benefits from 100 to 115.If the crime prevention budget is increased by $30,000,which of the following is the most efficient way to spend the money?

A)Hire a guard
B)Hire a police officer
C)Hire one guard and one police officer
D)Hire a half time guard and a half time police officer
E)Do not spend the additional money

Question 41

The Following Questions Refer to the graph below.
With prohibition,demand in the market for beer will

A)Increase
B)Decrease
C)Shift to the right
D)Not be affected
E)Become flatter

Question 42

The most likely economic effects of the legalization of marijuana are

A)An increase in both supply and demand
B)A fall in the price of marijuana
C)An increase in marijuana use
D)An increase in the quality of marijuana
E)All of the above

Question 43

Which of the following would not result from the legalization of marijuana?

A)A fall in the price of marijuana
B)An increase in the quality of marijuana
C)A significant increase in the supply of marijuana
D)A significant increase in the demand for marijuana
E)A decrease in the supply of marijuana

Question 44

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

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

Question 45

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

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

Question 46

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

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 47

The Following Questions Refer to the graph below.
Curves D₂ and S₂ represent the market for beer if it is legal.Prohibition will cause equilibrium price and quantity to change to

A)P₁ and Q₂
B)P₂ and Q₁
C)P₃ and Q₄
D)P₄ and Q₃
E)None of the above

Question 48

The more abortions a doctor performs,the fewer the appendectomies he can perform.Measuring the cost of an abortion in terms of the number of appendectomies he must forego performing is an illustration of the

A)Economies of mass production
B)Law of diminishing returns
C)Opportunity cost principle
D)Law of comparative advantage
E)Law of demand

Question 49

The Following Questions Refer to the graph below.
Which of the following shifts best represents the likely effect of prohibition on the market for beer?

A)D₁ to D₂
B)D₂ to D₁
C)S₂ to S₁
D)D₁ to D₂ and S₁ to S₂
E)D₂ to D₁ and S₂ to S₁

Question 50

If abortion were made illegal throughout the United States,

A)The cost of abortion services would rise
B)The quality of abortion services would fall and become less standardized
C)The supply of abortion services would decrease
D)The demand for abortion services would decrease
E)All of the above

Question 51

The Following Questions Refer to the graph below.
Curves D₁ and S₁ represent the market for marijuana if it is illegal.Legalization of marijuana will cause equilibrium price and quantity to change to

A)P₁ and Q₂
B)P₂ and Q₁
C)P₃ and Q₄
D)P₄ and Q₃
E)None of the above

Question 52

People choose to participate in criminal activities because

A)Their implicit costs are low
B)They have a strong,unrestrained emotion
C)The probability of getting caught is low
D)The potential return is high
E)All of the above

Question 53

Economics explains the decision to participate in criminal activities most often in the case of

A)Violent crimes
B)Crimes of passion
C)Murder
D)Trafficking in illegal substances
E)Vandalism

Question 54

Which of the following is an economic effect of prohibition of alcohol?

A)A reduction in the supply,a decrease in price,and a decrease in the quality of liquor
B)An increase in supply,a decrease in price,and an increase in the quality of liquor
C)A decrease in supply,an increase in price,and no change in the quality
D)A decrease in supply,an increase in price,and a decrease in quality
E)None of the above

Question 55

The Following Questions Refer to the graph below.
In addition to the change in supply,demand,price,and quantity of beer,prohibition would have which of the following effects?

A)Improved quality
B)Less criminal activity
C)A decrease in resources needed for crime prevention
D)All of the above
E)None of the above

Question 56

If you are willing to take a pay cut to live near a ski resort,the ski resort provides you with

A)Free ski lessons
B)Psychic benefits
C)Opportunities for advancement
D)Marginal social benefits
E)Marginal social costs

Question 57

The Following Questions Refer to the graph below.
Which of the following shifts best represents the likely effect of legalizing marijuana?

A)D₁ to D₂
B)D₂ to D₁
C)S₂ to S₁
D)D₁ to D₂ and S₁ to S₂
E)D₂ to D₁ and S₁ to S₂

Question 58

The Following Questions Refer to the graph below.
With prohibition,supply in the market for beer will

A)Increase
B)Decrease
C)Shift to the right
D)Not be affected
E)Become flatter

Question 59

If a law is passed making it illegal for unlicensed barbers to cut hair,which of the following will result?

A)Higher quality haircuts
B)Higher priced haircuts
C)Cleaner,more sanitary barber shops
D)Lower priced haircuts
E)More barbers in the trade

Question 60

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

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 61

An example of a semi-private good would be

A)Measles inoculation programs
B)A neighborhood crime watch group
C)Talking on a cell phone during the screening of a movie
D)All of the above are semi-private goods
E)None of the choices are semi-private goods

Question 62

Which of the following DOES NOT go into the calculation of the implicit cost of a marijuana growing operation?

A)The probability of getting caught
B)The severity of potential jail sentences
C)The time it takes to tend the crop
D)Payments for fertilizer and pesticides
E)None of the above (they all go into the calculation of implicit costs)

Question 63

When an individual incurs costs in the form of negative personal satisfaction,the costs are

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

Question 64

Which of the following is an implicit cost of an illegal marijuana growing operation?

A)Foregone income due to time spent managing the operation
B)Lost time if the manager is caught
C)Lost liberty if the manager is jailed
D)The value of the time spent avoiding detection
E)All of the above

Question 65

If income from the sale of illegal goods exceeds the production costs of the goods,which of the following is true?

A)The criminal earns a profit
B)Crime "pays"
C)Revenue plus psychic income exceeds all costs
D)Income more than covers explicit,implicit,and psychic costs
E)All of the above

Question 66

Consumer ratings of products online,like the Zagat's Restaurant Guide and ePinions can be considered examples of

A)Private goods
B)Public goods
C)Semi-private goods
D)Experience goods
E)Worthless,since you don't know who is doing the reviewing

Question 67

Economists think that you can analyze why individuals commit crimes because

A)Criminals are always trying to obtain monetary gains
B)Criminals weigh the costs and benefits associated with the costs of committing a crime
C)Crime has costs to society
D)All of the above
E)It is not possible to analyze the commission of crimes using economic analysis

Question 68

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

Question 69

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

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

Question 70

Vandalism is a violent crimE.

Question 71

Murder is both illegal and immoral.

Question 72

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

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

Question 73

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

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

Question 74

Which of the following increases the chances that a person will engage in criminal activity?

A)A high perceived probability of getting caught
B)A low potential pay-off from the crime
C)The ability to restrain emotions
D)A low opportunity cost
E)None of the above

Question 75

Some people give up high-paying city jobs to live much simpler,rural lives.Which of the following is a sound economic explanation for this?

A)The very high psychic income they receive from the simple way of life
B)The lower cost of living in the country
C)The fear of crime in the city
D)The fact that rural jobs are easier
E)None of the above

Question 76

Which of the following is an explicit cost of an illegal marijuana growing operation? The cost of

A)Land
B)Electricity
C)Fertilizer and pesticides
D)Labor
E)All of the above

Question 77

Which of the following policies could increase the cost of committing crimes?

A)Job training programs
B)Increased employment opportunities
C)Higher crime prevention budgets
D)More severe penalties
E)All of the above

Question 78

Which of the following could explain why criminals commit crimes that are punished by the death penalty?

A)They perceive that the probability of getting caught is zero
B)The crime is a "crime of passion."
C)Their opportunity cost is zero
D)The benefit of the crime is infinite
E)All of the above

Question 79

Current reports on crime are concerned solely with the number of crimes committed and not with dollar estimates of their cost.

Question 80

Job training programs,remedial education courses,and recreational activities might lead to reduced crime rates in depressed areas by

A)Providing jobs to instructors and counselors
B)Increasing the opportunity costs of committing crimes
C)Improving the public's view of their community
D)Providing psychic income to organizers
E)None of the above