Deck 2: Crime and Drugs

Question 1

What is the definition of a public good or service Name some other public goods and services in addition to crime prevention.

Answer 1

The goods and services which have unique characteristic of non-excludability (consumption by one cannot reduce the quantity of consumption by others) and non-rivalry (consumption by one cannot withheld the consumption by others), and which cannot be provided by the private market efficiently is called the public goods and services.
Some examples of public goods and services are roads, sidewalks, bridges, parks, museums, libraries, water supply, basic education, health services, basic television and radio broadcasts, etc.

Question 2

What is the free-rider problem Why does it exist What are other examples of free riders

Answer 2

The "non-excludability" property of public goods gives rise to the problem called free rider problem. The free rider problem occurs when a person enjoys the benefit of certain products without contributing to its cost. The free-rider problem is the basic reason why government provides the public goods. The classic example of free rider problem is the national defense.
The free rider problem occurs when a person enjoys the benefit of certain products without contributing to its cost. The free-rider problem is the basic reason why government provides the public goods. The classic example of free rider problem is the national defense. The people of a country including the tax evaders enjoy the benefit of being defended. The people and general tax payers pay taxes and the government is spending the tax revenue on national defense. But the benefit of this is enjoyed by the people who evade taxes. It is not always possible to exclude these people from the benefit of such services.
Other examples of free riders are, collective bargaining in which the representatives bargain for some issue and all the workers gain from it including those who does not pay the union fees.

Question 3

What is meant when we say that a public good is indivisible, nonrivalrous, and nonexcludable

Answer 3

The goods and services which have unique characteristic of non-excludability (consumption by one cannot reduce the quantity of consumption by others) and non-rivalry (consumption by one cannot withheld the consumption by others), and which cannot be provided by the private market efficiently is called the public goods and services.
If we say that the public good is indivisible we mean that these goods cannot be used solely by one consumer and the benefit we get from them cannot be divided between its user. Everybody will get same benefit and can consume same amount of the good.
If we say that the public good is nonrivalrous, we mean that the consumption of the public good by one cannot withheld the consumption by others.
If we say that the public good is non-excludable, we mean that consumption by one cannot reduce the quantity of consumption by others.

Question 4

Discuss cost-benefit analysis. What are the benefits of crime prevention What are the costs Are all the benefits and costs easily measurable What should we do when costs or benefits are not quantifiable Should we base all of our decisions on cost-benefit analysis

Question 5

Of what significance is the elasticity of demand for drugs in the debate about legalization of presently illegal substances

Question 6

How could taxes be used to regulate legal drug markets How are excise taxes on drugs similar to excise taxes on cigarettes Why are excise taxes on cigarettes and alcohol sometimes called "sin taxes" Do we tax them solely because they are "sins"

Question 7

Is it possible to be a social liberal and an economic conservative (or vice versa) with regard to drugs and so-called victimless crimes Be sure that you've read the Viewpoint section carefully.

Question 8

Go to the Federal Bureau of Investigation Web site (http://www.fbi.gov), locate the Uniform Crime Report, and find the latest statistics on violent crime. Has violent crime increased or decreased in the latest year available

Question 9

Go to the Web site for the National Center for Victims of Crime at http://www.ncvc.org. How might this Web site be used by someone who has been a victim of crime

Question 10

The Sentencing Project has a Web site at http://www. sentencingproject.org. Try to discover the underlying view of the Sentencing Project toward expansion of prisons and incarceration in the United States. What is its view toward gender and racial issues

Question 11

The Bureau of Justice Statistics of the Department of Justice has a Web site at http://www.ojp.usdoj.gov/bjs. Try to find information on the number of prisons and prisoners in the United States.