56 lecture 10 tutorial questions question 1 before

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Lecture 10Tutorial QuestionsQuestion 1Before the 1976 Olympics, in Montreal, selling lottery tickets was a crime.Many illegal betting companies existed to sell tickets on various gambles.In order to raise money for the 1976 Olympics, the federal governmentfounded a lottery commission to sell lottery tickets. Since then manygovernment and privately licensed lotteries have arisen. What impactwould the government and privately licensed lotteries have on the bettingcompanies?Question 2 - Question 13.3:How would economics try to answer the question, “Does crime increase or decrease as asociety becomes wealthy?”57
If we think of the prevention of crime as a ‘good’, the income effect in society will cause demand forprevention to rise. The diagram illustrates that wealth increases the desire of the population (marginalbenefit of crime reduction) for more services, including more law enforcement personnel.The marginal social cost of crime includes both the private and public costs of crime that increase withmore law enforcement.The expenditure on prevention will raise the probability of being caught and lower the expected value ofcriminal activity. Further, increased wealth could reasonably be taken to mean a rise in potentiallegitimate income opportunities for potential criminals, increasing the opportunity cost of crime.Crime reduction is treated as a “good” – so crime decreases as greater wealth shifts the marginal benefitof crime reduction to the right.Question 3 - Question 13.4:If Canada’s Criminal Code prescribes the exact punishment for each crime, instead of allowing judges arange of punishments, predict what may happen to the level of crime in Canada, the level of arrests,the level of convictions and the amount of plea bargaining?Deterrence:For criminals, especially risk averse criminals, certainty of punishment makes punishment clearer to thecriminal and will added to the criminals’ expected cost of crime.Apprehension:58
Police feel more confident about making arrests, more charges are laid, and Cooter argues at p. 506 thatimprisonment rates also increase.Imprisoning a 25-year-old for life would cost a phenomenally large sum of money, probably in excess of$1,000,000. In addition, keeping older inmates in prison is very costly and does not provide much socialbenefit. A California study found that the annual medical costs for prison inmates 55 and older may be$100,000. Moreover, only 2 percent of inmates over 55 who are released are ever rearrested.Plea Bargaining:Any rigidity (mandatory minimums or mandatory sentences) that hampers a judge’s discretion, willresult in more expensive trials, more acquittals and fewer trials due to costs, because Crown attorneysare forced to consider the outright withdrawal or dropping of charges, because they cannot negotiatesentencing, leading to more plea bargaining, exchanging more serious charges for more lenient charges.

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Term
Summer
Professor
N/A
Tags
Adam, Ronald Coase, parties Blair

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