QUESTION TEXT: With which one of the following statements…
DISCUSSION: The gist of the economists’ view is in lines 4-8: cost-benefit should be the only factor used in assessing the fine.
You need to be extremely clear on this point. A lot of the answers say things that, if you stare at them a while, may sound like they cooouuld be cost-benefit. But they aren’t! Likelihood of re-offense isn’t cost-benefit. Number of offenses isn’t cost-benefit. Morality certainly isn’t cost-benefit!
Lines 6-8 say that cost-benefit is: cost of fine exceeds profits from crime. That’s the only factor, and that’s why A is correct: risk of business collapse is not relevant to cost-benefit.
___________
- CORRECT. Lines 4-8 are very clear. The economists think that cost-benefit should be the only consideration.
- This is a trap answer. The economists think that community judgements are irrelevant to setting a penalty. This answer says “assigning a moral weight to that crime”. The economists never discussed assigning a moral weight. They might be fine with it, if it wasn’t a monetary penalty.
(The author was the one who discussed a moral weight, on lines 49-50, and we don’ t know what they meant by it nor what the economists would think of it.) - Line 17 says that moral judgements should be irrelevant. The economists are for cost-benefit as the only factor.
- Lines 4-8 are very clear. Cost-benefit should be the only factor. Likelihood of re-offense doesn’t factor into cost-benefit.
- Same as D. Lines 4-8 say that cost-benefit is the only factor. This refers to the cost-benefit calculation of the crime under consideration, only.

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Just a small note. In your explanation for (A) you point out line 17 and remind us, “Community judgement should not be a factor.” However, (A) does not refer to community judgment at all, but just to corporations going out of business.
To be clear, I see why (A) is correct, because according to the economists, no other factor (such as a corporation going out of business) should be considered other than the “profit + $0.01” model. However, that’s the ONLY reason the answers right, to my mind. Community judgment has nothing to do with this answer.
Please correct me if I’m wrong.
JL
Yes, that’s correct. Thanks for catching that! The page has been updated.