A Police Department Is Trying to Allocate Crime Control Resources

question 113

Multiple Choice

A police department is trying to allocate crime control resources between murder and burglary.Detectives cost $40,000 each.Suppose that she marginal benefit of one less murder is $20,000 while the marginal benefit of one less burglary is $1,000.The number of murders and burglaries that occur at different levels of detective allocation is shown in the table. $\begin{array}{ccc}\begin{array}{c}\text { Number of } \\ \underline {\text { Detectives Assigned }}\end{array} & \begin{array}{c}\text { Number of } \\ \underline {\text { Murders }}\end{array} & \begin{array}{c}\text { Number of } \\ \underline {\text { Burglaries }}\end{array} \\0 & 20 & 100 \\1 & 16 & 60 \\2 & 13 & 30 \\3 & 11 & 10 \\4 & 10 & 0\end{array}$
The marginal benefits of 1,2,3,and 4 detectives being assigned to burglary prevention are

• A) $40,000,$30,000,$20,000,and $10,000.
• B) $60,000,$30,000,$10,000,and 0.
• C) $40,000,$70,000,$90,000 and $100,000.
• D) 40,30,20,and 10.

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Definitions:

Closing Entry Process

The procedure at the end of an accounting period to prepare the accounts for the next period by clearing out revenues and expenses into the Retained Earnings account.

Temporary Accounts

Accounts used to collect information during a single accounting period, which are then transferred to permanent accounts at the end of the period.

Permanent Accounts

Accounts that carry their ending balances over into the next accounting period; these include asset, liability, and equity accounts.