Refer to the Information Given in Table 16 -Refer to Table 16

question 114

Multiple Choice

Refer to the information given in Table 16.8 below to answer the question that follows.
Table 16.8
$$\begin{array} { c c c } \begin{array} { c } \text { Number of } \\\text { Police Officers }\end{array} & \begin{array} { c } \text { Tim's } \\\text { Willingness to Pay }\end{array} & \begin{array} { c } \text { Al's } \\\text { Willingness to Pay }\end{array} \\\hline 1 & \$ 200 & \$ 120 \\\hline 2 & 160 & 40 \\\hline 3 & 100 & 20 \\\hline\end{array}$$
-Refer to Table 16.8. Assume that the marginal cost of hiring a police officer is $120. If A and B are the only two people in the society, the optimal number of police officers is

• A) 1.
• B) 2.
• C) 3.
• D) indeterminate from this information.

Grasp the principles of horizontal and vertical equity in taxation.

Describe the primary sources and categories of federal tax receipts.

Calculate and understand average and marginal tax rates.

Recognize the demographic trends affecting government budget deficits.

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Definitions:

Polygraph Test

A lie detection examination that measures physiological responses to questions to ascertain truthfulness.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for fight or flight response by accelerating heart rate, dilating pupils, and increasing blood flow to muscles.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for action by triggering the fight or flight response during stress.

Guilty-knowledge Test

A psychological assessment method used in criminal investigations to determine if an individual has knowledge only a guilty person could have.