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Accurate accounting of the economic costs

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Reference no: EM131499117

A newspaper article in a large metropolitan area noted that the costs of crime in a given year were $900 million. This was made up of $100 million dollars for the police force and $800 million in stolen property.

  1. Was the $900 million an accurate accounting of the economic costs of the crime? Why or why not?
  2. A mayoral candidate ran on the basis of eliminating all crime in the city. Is this an economically efficient use of resources? Why or why not?
  3. Is victim "pain and suffering" a valid economic cost of crime? How would you measure it?
  4. If there is only a limited amount of money available for crime prevention, what is the economically efficient criterion for allocating it? Why?

Reference no: EM131499117

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