According to the Text, for Punishment to Be Effective as a Deterrent

question 52

True/False

According to the text, for punishment to be effective as a deterrent, it must be swift, certain, and severe.

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Definitions:

Consumption Bundle

A combination of various goods and services that an individual consumes over a given period.

Preferences

The subjective tastes and priorities of consumers, influencing their choices among different goods, services, or outcomes.

Income

The total sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings received over a certain period of time.

Convex Preferences

A preference structure in consumer theory where combinations of goods are preferred over single goods, indicating a love for diversification.