Chapter 28 – The Economics of Crime
Chapter 28 The Economics of Crime
Multiple Choice
1. Crime victims in the U.S. are disproportionately
A) whites.
B) minorities.
C) Asian-Americans.
D) legal immigrants.
2. Crime in the U.S. is committed disproportionately by
A) legal immigrants.
B) minorities.
C) Asian-Americans.
D) whites.
3. When blacks are murdered it is typically at the hands of
A) whites.
B) other blacks.
C) an equal division of blacks and whites.
D) the races in rough proportion to their population.
4. When whites are murdered it is typically at the hands of
A) other whites.
B) blacks.
C) an equal division of blacks and whites.
D) the races in rough proportion to their population.
5. A rational criminal model assumes
A) criminals commit crimes because they have few legal opportunities.
B) will commit fewer crimes if the likelihood of getting caught rises.
C) will commit fewer crimes if the severity of punishment rises.
D) all of the options are correct.
Chapter 28 – The Economics of Crime
6. A rational criminal model assumes
A) criminals commit crimes because they have few legal opportunities.
B) will commit more crimes if the likelihood of getting caught rises.
C) will commit more crimes if the severity of punishment rises.
D) smart people commit crime.
7. A rational criminal model assumes
A) criminals commit crimes because they have more legal opportunities.
B) will commit fewer crimes if the likelihood of getting caught rises.
C) will commit more crimes if the severity of punishment rises.
D) smart people commit crime.
8. A rational criminal model assumes
A) criminals commit crimes because they have more legal opportunities.
B) will commit more crimes if the likelihood of getting caught rises.
C) will commit fewer crimes if the severity of punishment rises.
D) smart people commit crime.
9. Under the rational criminal model, an increase in the legal income producing opportunities
available to a population will
A) increase crime.
B) have no affect on crime.
C) decrease crime.
D) simply shift crime from blue-collar to white-collar crime.
10. Under the rational criminal model, a decrease in the legal income producing opportunities
available to a population will
A) increase crime.
B) have no affect on crime.
C) decrease crime.
D) simple shift crime from white-collar to blue-collar crime.
Chapter 28 – The Economics of Crime
11. Under the rational criminal model, an increase in the probability of getting caught will
A) increase crime.
B) have no affect on crime.
C) decrease crime.
D) generate more income for pro bono defense attorneys.
12. Under the rational criminal model, a decrease in the probability of getting caught will
A) increase crime.
B) have no affect on crime.
C) decrease crime.
D) increase unemployment among pro bono defense attorneys.
13. Under the rational criminal model, an increase in the punishment associated with getting
convicted will
A) increase crime.
B) have no affect on crime.
C) decrease crime.
D) reduce the caseload in the appellate court system.
14. Under the rational criminal model, a decrease in the punishment associated with getting
convicted will
A) increase crime.
B) have no affect on crime.
C) decrease crime.
D) increase the caseload in the appellate court system.
15. An example of the type of crime that is contemplated by the rational criminal model is
A) rape.
B) spousal abuse.
C) car theft.
D) school shooting.
Chapter 28 – The Economics of Crime
16. An example of the type of crime that is contemplated by the rational criminal model is
A) rape.
B) drug dealing.
C) spousal abuse.
D) school shooting.
17. An example of the type of crime that is contemplated by the rational criminal model is
A) rape.
B) spousal abuse.
C) school shooting.
D) murder for hire.
18. An example of the type of crime that is contemplated by the rational criminal model is
A) prostitution.
B) spousal abuse.
C) rape.
D) school shooting.
19. Which of the following is not an example of a crime contemplated by the rational criminal
model?
A) Murder for hire.
B) Car theft.
C) Insurance fraud.
D) School shooting.
20. Which of the following is not an example of a crime contemplated by the rational criminal
model?
A) Rape.
B) Car theft.
C) Insurance fraud.
D) Murder for hire.
Chapter 28 – The Economics of Crime
21. Which of the following is not an example of a crime contemplated by the rational criminal
model?
A) Murder for hire.
B) Spousal abuse.
C) Insurance fraud.
D) Car theft.
22. Which of the following is not an example of a crime contemplated by the rational criminal
model?
A) Murder for hire.
B) Car theft.
C) Assault.
D) Insurance fraud.
23. If the poverty rate declines because of a general increase in the economic standing of lower
income people, the rational criminal model would predict
A) increased crime.
B) have no affect on crime.
C) decreased crime.
D) increased social worker caseloads.
24. If the poverty rate increases because of a general decline in the economic standing of lower
income people, the rational criminal model would predict
A) increased crime.
B) have no affect on crime.
C) decreased crime.
D) reduced social worker caseloads.
25. Economist Steven Levitt argues the Supreme Court decision ______ had an impact on
reducing crime during the 1990s
A) on abortion
B) on prayer in schools
C) on gay marriage
D) school bussing
Chapter 28 – The Economics of Crime
26. The economic intuition behind the connection between abortion and crime rates is based on
the idea that
A) women who choose abortion do not want the child and, if compelled to raise it would be
poorer and do a poorer job at parenting leading increasing the likelihood the child would
grow up to be a criminal.
B) the Supreme Court decision removing most limits on abortion made the country more
peaceful.
C) women instinctively know when a child will grow up to be a criminal and are more likely
to abort those they believe will grow up to be criminals.
D) abortion is a moral prerogative of women.
27. Which of the following reasons offered for why crime fell in the 1990s does economist
Steven Levitt suggest had no impact?
A) Higher rates of incarceration
B) The increase in the number of police
C) Longer effective sentences
D) The increased use of the death penalty
28. Which of the following reasons offered for why crime fell in the 1990s does economist
Steven Levitt suggest had no impact?
A) Higher rates of incarceration
B) Longer effective sentences
C) The increase in the number of police
D) The increased use of community policing
29. Which of the following reasons offered for why crime fell in the 1990s does economist
Steven Levitt suggest had no impact?
A) Higher rates of incarceration
B) Longer effective sentences
C) The increase in the number of police
D) The increased use of gun buyback programs
Chapter 28 – The Economics of Crime
30. Which of the following reasons offered for why crime fell in the 1990s does economist
Steven Levitt suggest had a significant impact?
A) Higher rates of incarceration
B) The increased use of the community policing
C) The increased use of gun buyback programs
D) The increased use of the death penalty
31. Which of the following reasons offered for why crime fell in the 1990s does economist
Steven Levitt suggest had a significant impact?
A) The increased number of police
B) The increased use of the community policing
C) The increased use of gun buyback programs
D) The increased use of the death penalty
32. Which of the following reasons offered for why crime fell in the 1990s does economist
Steven Levitt suggest had a significant impact?
A) The increased effective length of prison sentences
B) The increased use of the community policing
C) The increased use of gun buyback programs
D) The increased use of the death penalty
33. Economist Jessica Reyes has linked the dramatic drop in violent crime during the 1990s and
beyond to
A) The increase in the use of cars
B) The 1970s era laws that required the removed of lead from fuels and paint
C) The 1990s era of prison expansion
D) The 1980s era tax cuts
34. Whether it is the linkage to increases in the prevalence of abortion in the 1970s or the laws
reducing lead from paint and gasoline during that time, economists
A) are convinced that these are the real causes of crime.
B) think these may explain a portion of the crime issue but you have to be very careful to
avoid the fallacy of composition.
C) think these may explain a portion of the crime issue but you have to be very careful to
avoid the fallacy that correlation and causation are the same.
D) a generally skeptical that anything that occurred in the 1970s could explain something
that occurred 20 years later.
Chapter 28 – The Economics of Crime
35. The linkage to increases in the prevalence of abortion in the 1970s and the reduction in
violent crime in the 1990s is,
A) is nowhere to be found in the data.
B) is noticeable in the data but there is no theoretical connection between the two so it is
unlikely that there is a casual link.
C) is noticeable in the data and there is a plausible theoretical connection which means that
there may be a causal link.
D) is noticeable in the data and there is a plausible theoretical connection which means that
there is certainly a causal link.
36. The linkage to decreases in the prevalence of atmospheric lead in the 1970s and the reduction
in violent crime in the 1990s is,
A) is nowhere to be found in the data.
B) is noticeable in the data but there is no theoretical connection between the two so it is
unlikely that there is a casual link.
C) is noticeable in the data and there is a plausible theoretical connection which means that
there may be a causal link.
D) is noticeable in the data and there is a plausible theoretical connection which means that
there is certainly a causal link.
37. There are _____ Americans in local, state and federal prisons and jails.
A) 200,000
B) 2,000,000
C) 10,000,000
D) 100,000,000
38. Every year ______ Americans are arrested.
A) 400,000
B) 1,400,000
C) 14,200,000
D) 140,000,000
39. Of the people arrested every year in the U.S., _______ get some jail time.
A) 36,000
B) 730,000
C) 3,600,000
D) 36,000,000
Chapter 28 – The Economics of Crime
40. All totaled local, state and federal governments spend ______ on police, the judiciary and
prisons.
A) $214 million
B) $21.4 billion
C) $214 billion
D) $19.7 trillion
41. The estimated costs per crime in the US are
A) less than $50 even considering “pain and suffering”.
B) around $1,000 when excluding “pain and suffering”.
C) between $1,000 to $10,000 when including “pain and suffering”.
D) around $1,000 when excluding “pain and suffering” and between $1,000 to $10,000
when including “pain and suffering”.
42. Criminologists and economists estimate that the average criminal commits _______crimes
per year.
A) 1 to 5
B) 5 to 10
C) 10 to 180
D) 200 to 1000
43. Average annual per convict incarceration costs run about
A) $5,000.
B) $12,000.
C) $17,000.
D) $31,500.
44. The proper economic method of selecting a sentence length would be to
A) compare the reduction in the total cost of (marginal cost) crime being perpetrated by the
offender if released a year earlier with the reduction in incarceration costs (marginal
benefit) for that shorter sentence.
B) compare the total cost of crime being perpetrated by the offender if released a year earlier
with the incarceration costs for that shorter sentence.
C) compare the average cost of crime being perpetrated by the average offender if released a
year earlier with the average incarceration costs for that shorter sentence.
D) poll pro bono defense attorneys and follow their recommendation.
Chapter 28 – The Economics of Crime
45. The present value analysis of the death penalty
A) compares the present value of a human life with the present value of adjudication and
execution costs.
B) compares the present value of a human life with the present value of the cost of lifelong
incarceration.
C) compares the present value of adjudication and execution costs with the present value of
the cost of holding them in prison for life.
D) considers exclusively the probability of executing innocent people.
46. The present value analysis of the death penalty
A) shows that the death penalty is quite cost effective in its punishment and economists,
almost universally, embrace it for that reason.
B) shows that the death penalty is quite cost effective in its punishment though for a variety
of reasons economists are split on the wisdom of the policy.
C) shows that the death penalty is not cost effective in its punishment and economists,
almost universally reject it for that reason.
D) shows that the death penalty is not cost effective in its punishment though for a variety of
reasons economists are split on the wisdom of the policy.
47. The optimal level of crime control is achieved where
A) the marginal reduction in the expected cost of crime equals the marginal cost of
prevention.
B) the average reduction in the expected cost of crime equals the average cost of prevention.
C) the total reduction in the expected cost of crime equals the total cost of prevention.
D) the police officers’ association is satisfied.
48. 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
A) crime will be reduced.
B) the total amount spent on police protection is worth $8,050,000.
C) the average amount of safety produced per officer is more than $50,000.
D) the additional officer will produce at least $50,000 worth of extra safety annually.
Chapter 28 – The Economics of Crime
49. To an economist, the question of whether the right type of criminals are in jail hinges on
A) the likelihood they will commit their particular crime ever again if released.
B) whether the jail cell would be better utilized housing someone more dangerous.
C) the severity of the offenses the criminals committed to get them in jail.
D) whether criminals show remorse.
50. A cost-benefit analysis of the death penalty and lifetime incarceration must consider
A) the expected present value of the total costs of the two punishment methods to the
government.
B) the costs borne by the victims of the crime.
C) the effects upon police morale.
D) all of the options are correct.
51. Marginal benefit – marginal cost analysis suggests that we spend too much money
incarcerating
A) young criminals.
B) female criminals.
C) male criminals.
D) elderly criminals.
52. The realization that only a small portion of criminals commit the majority of crimes suggests
that as you devote more resources to the criminal justice system the
A) total cost always decreases.
B) total benefit quickly decreases.
C) marginal benefit quickly increases.
D) marginal cost sharply increases.
53. The realization that only a small portion of criminals commit the majority of crimes suggests
that as you devote resources to the criminal justice system the
A) total cost always decreases.
B) total benefit quickly decreases.
C) marginal benefit quickly decreases.
D) marginal cost sharply decreases.
Chapter 28 – The Economics of Crime
54. The costs borne by an individual victim of theft can diverge from the social costs if the
A) stolen items were covered by insurance.
B) stolen items were priceless.
C) stolen items were destroyed by the thief.
D) all of the options are correct.
55. The costs borne by an individual victim of theft can diverge from the social costs if the
A) stolen items were priceless.
B) stolen items were recovered for the victim by the police.
C) stolen items were destroyed by the thief.
D) all of the options are correct.
56. Among the simplest costs of crime to evaluate are typically the
A) psychological trauma suffered by victims of sexual assault.
B) deterioration in quality of life due to physical injury.
C) risk that future productivity at work might be compromised by an injury.
D) wages lost due to missed work days following an assault.
57. Among the most difficult costs of crime to evaluate might be the
A) psychological trauma suffered by victims of sexual assault.
B) costs of law enforcement activities undertaken because of the crime.
C) market value of material possessions stolen, damaged or destroyed.
D) wages lost due to missed work days following an assault.
58. Among the most difficult costs of crime to evaluate might be the
A) costs of law enforcement activities undertaken because of the crime.
B) market value of material possessions stolen, damaged or destroyed.
C) deterioration in quality of life due to physical injury.
D) wages lost due to missed work days following an assault.
Chapter 28 – The Economics of Crime
59. The magnitude of intangible losses can sometimes be estimated by investigating the average
A) annual incomes of police detectives and private investigators.
B) dollar amounts paid by insurance companies as reimbursement for property losses.
C) annual costs borne by victims of white collar crimes such as embezzlement.
D) dollar amounts individuals willingly pay to reduce their chance of being a victim.
60. The magnitude of intangible losses can sometimes be estimated by investigating the average
A) compensation awarded by juries in civil cases of wrongful death and personal injury.
B) dollar amounts paid by insurance companies as reimbursement for property losses.
C) annual costs borne by victims of white collar crimes such as embezzlement.
D) annual incomes of police detectives and private investigators.