The Following Questions Refer to the Table Below

question 8

Multiple Choice

The Following Questions Refer to the table below. The cost of each police officer is $20,000; the cost of each patrol car is $10,000.
-If the total budget is $100,000,what is the most efficient allocation of the crime prevention budget?

• A)1 police officer; 8 patrol cars
• B)2 police officers; 6 patrol cars
• C)3 police officers; 4 patrol cars
• D)4 police officers; 2 patrol cars
• E)5 police officers; 0 patrol cars

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Definitions:

Demand For Money

The desire to hold financial assets in the form of money (cash or bank deposits), driven by transactions, precautionary, and speculative motives.

Credit Crisis Of 2008

An unprecedented financial crisis that peaked in 2008, characterized by the collapse of financial institutions and a severe credit crunch, leading to a global economic recession.

FDIC

The Federal Deposit Insurance Corporation, an independent agency of the United States government that protects the funds depositors place in banks and savings associations.

Insolvent Banks

Financial institutions that are unable to meet their obligations or debts as they become due because their liabilities exceed their assets.