Economics Of Crime And Its Prevention.

UNIVERSITY OF EL SALVADOR

FACULTY OF LAW AND SOCIAL SCIENCES

INTERNATIONAL AFFAIRS SCHOOL



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COURSE:

ENGLISH VI








PART I FIND THE DEFINITIONS FOR THE CHECKLIST OF ECONOMICS OF CRIME AND ITS PREVENTION.

• Opportunity costs: state that the true cost of producing an additional unit of a good or service is the value of other goods orservices that must be given up to obtain it.
• Individually consumed goods and services: good or service that gives satisfaction only to the consumer.


• Collectively consumed goods and services: yield benefits to each person within a group, and no one person in the group can identify the specific part of the benefit he or she receives.




• Semicollectively consumed goods andservices: yield satisfaction both to the individual doing the consuming and to others.


• Spillovers in consumption, social: when the consumption of a good or service causes a change in satisfaction for someone other than the direct consumer of the item a social spillover in consumption exists, such spillover can have positive or negative effects on satisfaction.



• Spillovers inproduction, social: : when the production of a particular good or service causes a change in the cost of producing some other item, a social spillover in production exists, such spillover can have positive or negative effects on production cost.



• “free rider” problem: an individual who consumes benefits from a collectively consumed good but who pays no part of its cost.


• Publicgoods: collectively consumed goods and services.

• Cost benefit analysis: is a technique for determining the optimal level of an economic activity by considering the relationship between the costs and benefits of the activity.

• Marginal social benefit: the increase in total benefit to society due to a one unit increase in an economic activity.

• Marginal social cost: theincrease in total cost to society due to a one unit increase in an economic activity.


• Equimarginal principle: states that an efficient allocation of a budget exists when the last dollar spent on any one facet of the budget yields the same marginal social benefit as the last dollar spent on any other facet of the budget.

• Psychic income: when an individual receives benefits from abusiness endeavor in the form of personal satisfaction rather than in the form of money.

• Psychic costs: when an individual incurs costs in pursuing a business in the form of negative personal satisfaction rather than in the form of money.



PART II ANSWER THE QUESTIONS WHILE READING THE MATERIAL.

12- What are the expectations when there is plenty of goods and services of an illegalproduct?

Economic analysis is also helpful in determining whether goods or services should be considered illegal. Typically, when an illegal activity is made legal, both supply and demand increase, although in most cases the increase in supply can be expected to be greater in degree than the increase in demand, leading to a fall in the equilibrium price of the activity and an increase in theequilibrium quantity purchased. Additionally, it is reasonable to expect the quality of the good or service to increase.

13- Do you know any illegal business that contributes to the GDP in El Salvador?


14- Considering that marijuana is a business and it has an explicit and implicit cost, does it contribute to the GDP?

Marijuana is grown as a business venture and the opportunity cost ofoperating the marijuana growing business is made up of both explicit and implicit costs. The cost of getting caught is difficult to estimate.

15- Which are the white collar crimes?

A crime committed by a person of respectability and high social status in the course of his occupation. Generic phrase for any unlawful, nonviolent conduct committed by business and government professionals...