ECONOMICS OF CRIMES AND ITS PREVENTION

Suppose the end of the semester is approaching and you have exams to prepare for in economics, calculus, and history. Further suppose that your primary goal is to maximize your grade point average. Explain how the equi­marginal principle might be used to help you allocate your study time. 11. Discuss: “The crime associated with the drug trade is due to the illegality of the drugs, not due to drugs per se. As such, if you want to bring down crime in the United States, you should legalize drugs such as marijuana and cocaine.” 19. Define and give examples of psychic income and psychic costs and explain how they influence decision making.  20. Based on the equimarginal principle, do you think that a reallocation of the current government’s crime prevention budget could lead to a fall in crime rates? Please provide (at least) a half page answer for each question.