Suppose Your City Has Had an Increase in Crime and the City

question 244

Multiple Choice

Suppose your city has had an increase in crime and the city government decides that more police are needed to patrol at night. Which of the following funding solutions avoids the free-rider problem involved with additional police officers?

• A) taxation of the city's top 50% of income earners
• B) donation-based police service
• C) voluntary police officers
• D) an increase in the city's sales tax

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Definitions:

Commercial Banking

Banking services provided to businesses and individuals, including deposit taking, lending, and various other financial transactions.

Investment Banking

A sector of the banking industry that deals with the creation of capital for other companies, governments, and other entities.

Investment Bankers

Professionals who work in financial institutions, facilitating mergers, acquisitions, and the issuance of securities.

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and investment firms.