Question
Analysts estimate that the expansion of the capacity of the criminal courts in a city would require about 7,200 additional hours of juror time. The
Analysts estimate that the expansion of the capacity of the criminal courts in a city would require about 7,200 additional hours of juror time. The average wage rate in the city is $15/hour. Assume jurors are not paid by their employers if they miss work for jury duty, but jurors are compensated $6/hour by the city courts when they serve. (10 points)
a. Assuming this is the only cost and given only the above information, what is the resulting social cost of this expansion program? Be sure to defend your answer
b. Now suppose you learn that a quarter of the jurors are homemakers, retirees, or unemployed. What would the resulting estimate of the social cost of this program be? In answering this question, assume that who is and is not currently employed is random across the city's residents. Be sure to defend your answer
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