The government wants to reduce white-collar crime. a. Suppose for the moment innocent people are never wrongly

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The government wants to reduce white-collar crime.
a. Suppose for the moment innocent people are never wrongly convicted of a crime. Explain why the Becker model of crime and punishment suggests that we increase the fines people pay if they are convicted instead of hiring more people to investigate white-collar crime.
b. Now suppose that mistakes happen and innocent people are sometimes convicted of white-collar crime. Why in this case might we want to hire more investigators instead of raising fines? What role does equity or fairness play in this case?
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Microeconomics

ISBN: 978-1292079578

Global Edition 1st Edition

Authors: David Laibson, John List

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