New Zealand possums produce the highest quality fur, due to the large pelts per body size. Demand for New Zealand possums products has risen…September 3, 2020
Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate.September 3, 2020
Create an economic model of rational crime.
For example, imagine a burglar is deciding which house to break into or a car thief is deciding which car to steal.
- Explain assumptions of rationality by individuals or firms.
- What factors would a rational criminal take into account in deciding to commit a crime? Be sure to explain how economic models are used by economists to assess the example.
- What would convince the criminal to do the deed? Explain the circumstances that would convince the criminal to do the deed. Address the concept of marginality and use your calculations of marginal changes as justification.
- What are some policy implications of your economic model of rational crime? In other words, what does your model predict would cause an increase and a decrease in crime?
- Use the distinction between positive and normative reasoning to explain the limits to using your economic model of rational crime to argue for capital punishment as punishment for burglary or car theft.