A rational criminal model assumes
A. criminals commit crimes because they have more legal opportunities.
B. criminals will commit fewer crimes if the severity of punishment rises.
C. criminals will commit more crimes if the likelihood of getting caught rises.
D. smart people commit crime.
Answer: B
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In an unregulated competitive market, the presence of marginal external benefit from a good or service results in less than the efficient quantity being produced
Indicate whether the statement is true or false
The small-firm effect refers to the
A) negative returns earned by small firms. B) returns equal to large firms earned by small firms. C) abnormally high returns earned by small firms. D) low returns after adjusting for risk earned by small firms.
Suppose that an economy produces civilian goods and military goods. If technological breakthroughs increase its ability to produce military goods, then
a. fewer military goods will be produced b. more civilian goods will be produced c. the opportunity cost of producing military goods will rise d. there will be productive inefficiency in the economy e. the production possibilities frontier will pivot outward around the axis for military goods
If output falls, which of the following could be an explanation?
a. a rise in the interest rate b. a fall in foreign income c. a decline in government spending d. a rise in the interest rate, a fall in foreign income, or a decline in government spending