5 DQuestion 6Recall that the economic goal of criminal law is to minimize the sum of three things: (1) the social cost of the crimes that are committed, (2) the cost of detection, and (3)the cost of trying and punishing the offenders who get caught.Suppose that a crime has a social cost of $10,000 each time it is committed. Every time an offender is caught, he or she is tried, convicted, and imprisoned. The cost oftrying and punishing each offender who gets caught is $25,000. A city is considering hiring additional police dedicated to detecting this crime. The change wouldincrease the fraction of offenders who get caught from 10% to 20%. Suppose this increase in detection would result in a decrease in the number of crimes committedfrom 1,000 a year to 800 a year.What effect would hiring the additional police have on the social cost of crimes committed?O $1 million reduction in the social cost of crimesO $2 million reduction in the social cost of crimesO $6 million reduction in the social cost of crimesO $9 million reduction in the social cost of crimesQuestion 7Suppose that a crime has a social cost of $10,000 each time it is committed. Every time an offender is caught, he or she is tried, convicted, and imprisoned. The cost oftrying and punishing each offender who gets caught is $25,000. A city is considering hiring additional police dedicated to detecting this crime. The change wouldincrease the fraction of offenders who get caught from 10% to 20%. Suppose this increase in detection would result in a decrease in the number of crimes committedfrom 1,000 a year to 800 a year.What effect would hiring the additional police have on the cost of trying and punishing offenders?O $1 million reduction in the cost of trying and punishing offendersO $1 million increase in the cost of trying and punishing offendersO $1.5 million increase in the cost of trying and punishing offendersO $2.5 million increase in the cost of trying and punishing offendersO $3 million reduction in the cost of trying and punishing offenders|oo

Given information Social cost of each criminal=$10000 The cost of trying and punishing=$25000 Due to…

Recall that the economic goal of criminal law is to minimize the sum of three things: (1) the social cost of the crimes that are committed, (2) the cost of detection, and (3) the cost of trying and punishing the offenders who get caught. Suppose that a crime has a social cost of $10,000 each time it is committed. Every time an offender is caught, he or she is tried, convicted, and imprisoned. The cost of trying and punishing each offender who gets caught is $25,000. A city is considering hiring additional police dedicated to detecting this crime. The change would increase the fraction of offenders who get caught from 10% to 20%. Suppose this increase in detection would result in a decrease in the number of crimes committed from 1,000 a year to 800 a year. What effect would hiring the additional police have on the social cost of crimes committed? $1 million reduction in the social cost of crimes O $2 million reduction in the social.cost of crimes

Recall that the economic goal of criminal law is to minimize the sum of three things: (1) the social cost of the crimes that are committed, (2) the cost of detection, and (3) the cost of trying and punishing the offenders who get caught. Suppose that a crime has a social cost of $10,000 each time it is committed. Every time an offender is caught, he or she is tried, convicted, and imprisoned. The cost of trying and punishing each offender who gets caught is $25,000. A city is considering hiring additional police dedicated to detecting this crime. The change would increase the fraction of offenders who get caught from 10% to 20%. Suppose this increase in detection would result in a decrease in the number of crimes committed from 1,000 a year to 800 a year. What effect would hiring the additional police have on the social cost of crimes committed? $1 million reduction in the social cost of crimes O $2 million reduction in the social.cost of crimes

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.2P

See similar textbooks

Similar questions

11. In 2022, Ibram X. Kendi, author of “How to be an Antiracist” informed Valencia College that he would join your economics professor in a moderated discussion – for one hour – and for a fee of $30,000. Who would argue that such a price is not only appropriate, but, if agreed to, would have created benefits for both parties in the transaction? a. John Locke b. Adam Smith c. Ibram X. Kendi d. The author of “I, Pencil” e. All the above.
Which of the following assertions regarding social efficiency and social welfare iscorrect?a. They are the same conceptb. Social welfare includes both economic efficiency and equity whereas socialefficiency does not include equityc. Social efficiency includes both economic efficiency and equity whereas socialwelfare does not include equityd. Social efficiency is a higher standard than social welfare.
Bart and Lisa are kids. Their parents want to get a pet to keep them busy during a pandemic but they must choose between a dog and cat. Bart's value of the cat is $20 and his value of the dog is $40. Lisa's value of the cat is $45 and her value of the dog is $15. 1. What is the efficient pet? Let's imagine that their parents flip a coin to decide who gets to choose the pet. Heads Lisa chooses and tails Bart chooses. 2. If the coin comes up heads and there are no barriers to negotiation, what will Lisa choose? 3. If the coin comes up tails and there are no barriers to negotiation, what will Bart choose?
Bart and Lisa are kids. Their parents want to get a pet to keep them busy during a pandemic but they must choose between a dog and cat. Bart's value of the cat is $10 and his value of the dog is $20. Lisa's value of the cat is $30 and her value of the dog is $10. 1. What is the efficient pet? Let's imagine that their parents flip a coin to decide who gets to choose the pet. Heads Lisa chooses and tails Bart chooses. 2. If the coin comes up heads and there are no barriers to negotiation, what will Lisa choose? 3. If the coin comes up tails and there are no barriers to negotiation, what will Bart choose? 4. What if there ARE barriers to negotiation and the coin is heads, what will Lisa choose? 5. What if there ARE barriers to negotiation and the coin is tails, what will Bart choose?
what is an externality? give an example of a postiive externality and an example of negative externality
What is social policy? What are some examples of social policy?
Firms A and B each produce 80 units of pollution. The federal government wants to reduce pollution levels. The marginal costs associated with pollution reduction are MCA = 50 + 3QA for firm A and MCB = 20 + 6QB for firm B, where QA and QB are the quantities of pollution reduced by each firm. Society’s marginal benefit from pollution reduction is given by MB = 590 – 3Qtot, where Qtot is the total reduction in pollution. Explain how the social optimum can be achieved if firms are given equal numbers of pollution permits but are allowed to trade
Bart and Lisa are kids. Their parents want to get a pet to keep them busy during a pandemic but they must choose between a dog and cat. Bart's value of the cat is $10 and his value of the dog is $40. Lisa's value of the cat is $30 and her value of the dog is $20. a. What is the efficient pet? [ Select ] ["cat", "dog"] Let's imagine that their parents flip a coin to decide who gets to choose the pet. Heads Lisa chooses and tails Bart chooses. b. If the coin comes up heads and there are no barriers to negotiation, what will Lisa choose? [ Select ] ["cat", "dog"] c. If the coin comes up tails and there are no barriers to negotiation, what will Bart choose? [ Select ] ["cat", "dog"] d. What if there ARE barriers to negotiation and the coin is heads, what will Lisa choose?…
19)Which of the following best illustrates the ceteris paribus assumption? * a)If the law requires people to wear seatbelts in order to reduce fatality rates, it may also cause people to drive faster. b)Chris notices that when economists discuss policy, they use the word "should" quite a lot, and they tend to disagree c)Felicia argues that since her company makes less profit when it limits its toxic pollution emissions, it must be true that pollution regulations are bad for everyone d)Caitlin notices that all other things being equal, her grades are higher the more time she spends studying
In this chapter on page 61 the passage describes British scholar W. D. Ross, who rejected utilitarianism as an ethical approach. Ross felt that utilitarianism was too simplistic and did not align with how people ordinarily think about morality and obligations in real-world situations. The quote indicates that while utilitarianism provides a basic framework, Ross believed a more complex account was needed to capture ethics adequately in a diverse society. Different normative theories have their strengths and limitations, and reasonable people can disagree on these complex philosophical issues. Essentially, I believe in the golden rule which encourages people to have empathy, goodwill, and respect toward all others. It promotes ethical and considerate behavior by appealing to our own self-interest in fair and compassionate treatment. please help resond to this discussion post
Economics 103-2 -3 -4 -5Your Name:__________________________________________Professor FriedmanYour TA:____________________________________________Spring 2016Your Section Time and Day:_____________________________Date Tuesday February 16 (UMass Monday)Please write neatly!Class 8, Quiz 6: To be done at home and handed in to TA sectionNote that you may work with one other person from your TA section.Externalities and Coaseâ€™s theoremYou have an insane roommate who plays â€œLet it Goâ€ (from Frozen) on repeat on her phone allthe time and thinks that everyone should put on pink tutus and sing very loudly and dance to it.You share your apartment with him and with three others. Three of you suffer $25 of braindamage every night from the Frozen experience; one person suffers only $5; and the insane onegets $90 of pleasure.1. Should he stop? What is the efficient outcome of the Frozen dispute?2. Would it matter who owns the stereo and holds the…
Define social benefit.