To optimally deter crime, law enforcement authorities should:
A) set higher fines for crimes that have a lower probability of being caught.
B) set the fine equal to the expected benefit, even if it is difficult to catch the offenders.
C) ignore the probabilities of catching offenders and attempt to prevent crime at all costs.
D) set very high fines regardless of the probability that an offender is caught.
A
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One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers, Alpha, Beta, and Charlie, have targeted Milltown's population. To get a donation, they must call Milltown's residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. Calls made by the fundraisers will tend to be:
A. clustered near 5:00 p.m. B. clustered near 7:00 p.m. C. clustered near 6:00 p.m. D. evenly distributed throughout the evening.
Refer to Figure 2-10. If the economy is currently producing at point E, what is the opportunity cost of moving to point B?
A) 26 thousand forks B) 60 thousand spoons C) 0 spoons D) 20 thousand forks
If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will
a. double and productivity will rise. b. double but productivity will not change. c. more than double and productivity will rise. d. more then double but productivity will not change.
If average labor productivity increases while population and the number of employed workers remain constant, then output per person:
A. increases. B. decreases. C. may increase or decrease. D. remains constant.