Suppose you are a mayor of a city with a police force of 100 and an annual budget of $8 million. Now suppose your police chief asks for an additional officer with an additional annual expenditure of $50,000 for salary, benefits and equipment. If you are thinking like an economist, you will agree to the request if the chief can demonstrate that

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When thinking like an economist, the decision should be based on whether the additional expenditure will result in at least an equal amount of benefit. In this case, if the police chief can demonstrate that the additional officer will produce at least $50,000 worth of extra safety annually, then it would be economically rational to approve the request. Options A, B, and C do not address the economic rationale behind the decision.

Suppose You Are a Mayor of a City with a Police