New Normal University Has Found It Necessary to Institute a Crime-Control

question 77

Multiple Choice

New Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism. The university is now considering several alternative levels of crime
Control. This table shows the expected total annual costs and bene?ts of these alternatives.
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Total Costs per } \\\text { Year }\end{array} & \begin{array} { c } \text { Total Benefits per Year (reduction in } \\\text { the costs of crime) }\end{array} \\\hline \text { Level One -1 Security Officer } & \$ 20,000 & \$ 80,000 \\\hline \text { Level Two -1 Security Officer with Guard Dog } & 30,000 & 120,000 \\\hline \text { Level Three -1 Security Officer with Guard Dog and Patrol Car } & 40,000 & 140,000 \\\hline \text { Level Four -2 Security Officers with Guard Dog } & 50,000 & 155,000 \\\hline \text { Level Five -2 Security Officers with Guard Dog and Patrol Car } & 60,000 & 160,000 \\\hline\end{array}$$ If New Normal University undertakes program Level Three,

• A) total bene?ts will be less than total costs.
• B) marginal costs will exceed marginal bene?ts.
• C) there would be an underallocation of resources to crime control.
• D) there would be an overallocation of resources to crime control.

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Definitions:

High Annual Rainfall

A climatic condition where a region receives a significantly large amount of precipitation over the course of a year.

Freezing Temperatures

A temperature at or below the freezing point of water, 0°C (32°F), where liquid water turns into ice.

Prevailing Wind

The wind direction most often observed at a particular location over a certain period of time.

Sand Dunes

Naturally occurring hills or ridges of sand piled up by the wind or sometimes by water flow, found in deserts and coastal areas.