suppose the first bill that is introduced mandates that security be improved so that the probability of catching a terrorist at the border increases from 10% to 15%, and these measures do not change the position of the blue curve. The opportunity cost of this increase in security is _______ million visitors per year. Suppose the first bill is passed, raising the probability of catching any given terrorist from 10% to 15%. However, this isn’t enough for some lawmakers. One representative introduces a bill that would increase security by an additional 15 percentage points.   Again, assume these measures do not change the position of the blue curve. The opportunity cost of this additional measure is  _____________ million additional visitors per year.   Refer back to your previous answers. The opportunity cost of increasing the probability of catching a terrorist from 15% to 30% is (greater than/equal/less than)  the opportunity cost of increasing that probability from 10% to 15%.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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2. The tradeoff between tourism and security

The blue curve on the following graph shows the tradeoff between security and tourism; that is, combinations of security and tourism above the blue curve are not possible, and those on or below the curve are possible. The vertical axis measures security, defined as the probability that a terrorist is intercepted before entering the country. The horizontal axis measures the number of yearly visitors to the United States, in millions.
Suppose that before 9/11, there were 55 million visitors per year, and the probability of intercepting any particular terrorist at customs and immigration was 10%, as indicated by the purple point (diamond symbol).
After the 9/11 attacks, a debate is held in Congress. Members of both parties agree that security measures need to be improved. However, there is some disagreement as to how much additional security is needed.
Suppose the first bill that is introduced mandates that security be improved so that the probability of catching a terrorist at the border increases from 10% to 15%.
 
Assuming the security bill does not change the position of the blue curve, place the gray point (star symbol) on the graph to show the effects of such a bill. (Hint: Be sure to plot your point on one of the black plus symbols.)
 
Image attatched
 
Again, suppose the first bill that is introduced mandates that security be improved so that the probability of catching a terrorist at the border increases from 10% to 15%, and these measures do not change the position of the blue curve. The opportunity cost of this increase in security is _______ million visitors per year.


Suppose the first bill is passed, raising the probability of catching any given terrorist from 10% to 15%. However, this isn’t enough for some lawmakers. One representative introduces a bill that would increase security by an additional 15 percentage points.
 
Again, assume these measures do not change the position of the blue curve. The opportunity cost of this additional measure is  _____________ million additional visitors per year.
 
Refer back to your previous answers. The opportunity cost of increasing the probability of catching a terrorist from 15% to 30% is (greater than/equal/less than)  the opportunity cost of increasing that probability from 10% to 15%.
 
SECURITY (Percent of terrorists caught)
50
40
20
0
0
+
+
+
20
x
+
40
60
80
TOURISM (Millions of visitors per year)
100
Transcribed Image Text:SECURITY (Percent of terrorists caught) 50 40 20 0 0 + + + 20 x + 40 60 80 TOURISM (Millions of visitors per year) 100
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