Asked by Tomas Calderaro on Jun 25, 2024
Verified
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.
Expected Benefit
The anticipated or forecasted gain or advantage that arises from a specific action or decision, often considered in cost-benefit analysis.
- Apply expected value calculations to determine optimal decision-making under uncertainty.
Verified Answer
VV
Villan VaranJun 28, 2024
Final Answer :
A
Explanation :
Setting higher fines for crimes that have a lower probability of being caught can help maintain the deterrent effect of the law. If the likelihood of being caught is low, a higher fine compensates for this by increasing the expected cost of committing the crime, thereby deterring potential offenders.
Learning Objectives
- Apply expected value calculations to determine optimal decision-making under uncertainty.