Often, in criminal court, the judge will sentence a defendant to 10 days in jail or a $500 fine. Some choose jail time, others the fine. What best determines their choice?
A) They compare the loss of utility from doing time versus the loss of utility from
Giving up the $500. If the loss of utility associated with the $500 is greater, they will
Choose jail time.
B) If they can earn $500 or more in 10 days, they will choose the fine.
C) If they can earn no more than $499 in 10 days, they will choose the fine.
D) Jail time generally has a utility of zero. If the utility of the $500 is greater than zero,
They will choose the fine.
E) Jail time generally has a utility of zero. If the utility of the $500 is greater than zero,
They will choose jail time.

Question

Quizplus · Accepted Answer

Individuals make their choice based on a comparison of the loss of utility from each option. If the loss of utility from paying the $500 fine is greater than the loss of utility from serving jail time, they will opt for jail to minimize their overall loss of utility.

Often, in Criminal Court, the Judge Will Sentence a Defendant