Microeconomics, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134461786
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 9Q
To determine
Cost of high powered incentives with regards to providing high wages to police officers and if it is a good idea to provide higher wages to police officers for making more arrests.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Explain the law of diminishing returns using crime prevention as the good in question.
Explain the impact of corruption from an economic perspective!
Suppose there are two types of persons: high-ability and low-ability. A particular diploma costs a high-ability person $8,000 and costs a low-ability person $20,000. Firms wish to use education as a screening device where they intend to pay $25,000 to workers without a diploma and $ K to those with a diploma. In what range must K be to make this an effective screening device?
Chapter 16 Solutions
Microeconomics, Student Value Edition (2nd Edition)
Knowledge Booster
Similar questions
- The adverse selection problem is least likely in which of the following occupations? explain Lawyer Barber College professor Marketing Analyst Managerarrow_forwardHow can Human Resource Management can help remove barriers to the "myths" associated with training costs?arrow_forwardWhat changes should be made in car crash testing to make cars safer for all occupants? Why do you think these changes haven’t been made yet? What other examples of male bias can you think of? How would you solve these problems? Would having more women in positions of leadership help solve these problems? Why or why not?arrow_forward
- how is corporate oversight that results in deadly consequence different from murder ? why are the crimes of capitalism not considered as sucharrow_forwardDo firms have the right to drug test all job applicants and refuse to hire applicants who test positive for drug use, even if the job in question has no safety or sensitivity concerns?arrow_forwardExplain what is meant by urban bias. What are the major effects of urban bias?arrow_forward
- What is the impact of compromising certainty in the interest of justice? Are there particular applications in your line of work or your organization.arrow_forwardIt was taught that liability insurance would undermine the tort system, which has as its central theorem the concept that the individual responsible for injuring another should be made to pay for that injury. Do you think the existence of liability insurance causes one to be less careful than he or she might otherwise be?arrow_forwardIn the city of Swiftsure, there is only one crime, armed robbery. The city recently decided to double the probability of imprisonment from 10 percent (10 percent of armed robberies result in a prison sentence) to 20 percent. Because the city has a fixed prison capacity, it also cut the average prison sentence in half, from 3 years to 1.5 years. a. Would you expect these changes in the city’s crime policy to increase, decrease, or not affect the city’s crime rate? Explain why. Would you expect these changes to increase, decrease, or not affect the total cost of crime (the sum of victim and prevention costs)?arrow_forward
- There are four categories of formal power ; coercive power , reward power , legitimate power and information power . Explain all of these with examplesarrow_forwardProblem: Consider a state in which automobile drivers are divided equally into two types of drivers: careful and reckless. The average annual auto-insurance claim is $400 for a careful driver and $1,200 for a reckless driver. Suppose that the state adopts an insurance system under which all drivers are placed in a common pool and allocated to insurance companies randomly. An insurance company cannot refuse coverage to any consumer it is assigned, but a consumer who is unhappy with the insurance company has the option of being reassigned (randomly) to another. By law, each insurance company must charge the same price to all its customers (i.e. no price discrimination). Assume that the insurance market is perfectly competitive and that claims represent all the costs associated with provision of insurance. Predict the minimum price of auto insurance under two alternative policy scenarios given below. Show all of your work and explain your answers. A. Auto insurance is mandatory B. Auto…arrow_forwardProvide examples of activities that students can participate in which can generate credible information for employers once you graduate. Explain how these examples fit in the framework of signalling: why is the activity costly, how does it help separate different types of students, why can employers not credibly learn this information in other ways?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning