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Economy Today 15th Edition Schiller

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The Economy Today, 15e (Schiller)


Chapter 1 Economics: The Core Issues

1) Which of the following is not one of the three core economic issues that must be resolved?
A) How to produce the goods and services we select.
B) What to produce with unlimited resources.
C) Who should get the goods and services we produce.
D) What to produce with limited resources.

Answer: B
Difficulty: 2 Medium
Topic: Scarcity: The Core Problem
Learning Objective: 01-04 The three core economic questions that every society must answer.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

2) The fundamental problem of economics is


A) The law of increasing opportunity costs.
B) The scarcity of resources relative to human wants.
C) How to get government to operate efficiently.
D) How to create employment for everyone.

Answer: B
Difficulty: 1 Easy
Topic: Scarcity: The Core Problem
Learning Objective: 01-01 What scarcity is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

3) In economics, scarcity means that


A) A shortage of a particular good will cause the price to fall.
B) A production possibilities curve cannot accurately represent the trade-off between two goods.
C) Society's desires exceed resources available.
D) The market mechanism has failed.

Answer: C
Difficulty: 1 Easy
Topic: Scarcity: The Core Problem
Learning Objective: 01-01 What scarcity is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

1
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No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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4) Given that resources are scarce,
A) A "free lunch" is possible, but only for a limited number of people.
B) Opportunity costs are experienced whenever choices are made.
C) Poor countries must make choices, but rich countries with abundant resources do not have to
make choices.
D) Some choices involve opportunity costs while other choices do not.

Answer: B
Difficulty: 2 Medium
Topic: Scarcity: The Core Problem
Learning Objective: 01-02 How scarcity creates opportunity costs.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

5) A consequence of the economic problem of scarcity is that


A) Choices have to be made about how resources are used.
B) There is never too much of any good or service produced.
C) The production of goods and services must be controlled by the government.
D) The production possibilities curve is bowed outward.

Answer: A
Difficulty: 2 Medium
Topic: Scarcity: The Core Problem
Learning Objective: 01-02 How scarcity creates opportunity costs.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

6) The basic factors of production include


A) Land, labor, money, and capital.
B) Land, labor, money, and inputs.
C) Labor and money.
D) Land, labor, capital, and entrepreneurship.

Answer: D
Difficulty: 2 Medium
Topic: Scarcity: The Core Problem
Learning Objective: 01-01 What scarcity is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
7) Factors of production are
A) Scarce in every society.
B) Scarce only in advanced countries.
C) Scarce only in the poorest countries of the world.
D) Unlimited in quantity.

Answer: A
Difficulty: 2 Medium
Topic: Scarcity: The Core Problem
Learning Objective: 01-01 What scarcity is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

8) Which of the following is not a factor of production?


A) A psychiatrist.
B) $100,000 cash.
C) A bulldozer.
D) Six thousand acres of farmland.

Answer: B
Difficulty: 2 Medium
Topic: Scarcity: The Core Problem
Learning Objective: 01-01 What scarcity is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

9) With respect to factors of production, which of the following statements is not true?
A) Factors of production are also known as resources.
B) In order to produce any good or service, it is necessary to have factors of production.
C) Factors of production include land, labor, capital, and entrepreneurship.
D) Only those resources that are privately owned are counted as factors of production.

Answer: D
Difficulty: 2 Medium
Topic: Scarcity: The Core Problem
Learning Objective: 01-01 What scarcity is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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XXVIII, number one (1910), and “Verbrechen und Sozialismus: Zugleich ein
Beitrag zum Studium der Kriminalität im Deutschland” in Vol. XXX, number
two (1912). In 1912 also appeared “The Social Factors of Crime and their
Significance in Comparison with the Individual Causes” in Vol. XXIII of the
“Tijdschrift voor Strafrecht”, the only Dutch journal of criminal law.

In the first part of this work, instead of stating in his own language the views
expressed in the previous literature on the subject Dr. Bonger has by extracts
from the various authors given us their opinions in their own language, adding
brief critical comments of his own. The second part contains Dr. Bonger’s own
discussion of the phenomena of crime based upon an unusually thorough
collection of statistical data and the elaboration of his views. In the selection of
authors from whom he quotes Dr. Bonger shows his sympathy with the social
philosophy of socialism which appears as well in the exposition of his own
explanation of criminality; but the facts which he collects together with the
evidence on which they rest are so explicitly set forth and his own conclusions
so carefully distinguished that the value of the study is not diminished even for
those who are not disposed to accept his social philosophy.

Dr. Bonger sees clearly that the concept of crime is a social and not a
biological one. It is the social value or harmfulness of acts or conduct that is
involved in the concept and if we use terms that have a predominantly
biological connotation such as “normal” or “abnormal”, we must be careful to
distinguish that use as referring to a social standard or we will be in danger of a
confusion of thought. That some of the acts which society has classed as
crimes may be deemed pathological is incidental; it is not on this account that
they are termed crimes but because they are socially detrimental. That some of
the individuals who have committed crimes may be called “abnormal” is
incidental; it is not because of this that they are classified as criminals. That the
economic factor has a large influence in connection with that kind of conduct
the social significance of which stamps it as criminal the author abundantly
shows. The extent to which this is the case and the extent to which the
economic conditions involved are inherent in our present social organization
are [xvii]matters on which there will be difference of opinion with the author.
Dr. Bonger’s expressed belief that his main positions will be received without
sympathy in this country we venture to think will not prove to be well founded.
On the contrary so clearly has he set them forth and so well has he supported
them that they can hardly fail of appreciation. If this work serves to some
extent as a corrective to a too prevalent tendency toward a confusion of
thought between biological and social concepts and standards in the study of
human conduct—and especially that kind of conduct which we have deemed
so socially detrimental as to brand as crime—its inclusion in this series will be
amply justified.

W ,P .
February 26, 1916. [xix]

[Contents]
INTRODUCTION TO THIS VOLUME.
B F H. N .1

Dr. Bonger’s work—“Criminality and Economic Conditions”—will arrest the


attention of students of criminology, sociology and kindred subjects. In it, also,
the political economist may delve with profit.

The eminent scholar and author in his preface to the American edition
expresses the conviction that his “ideas about the etiology of crime will not be
shared by a great many readers of the American edition,” and, also, “that the
book is sure to meet with many disapproving critics on this side of the ocean.”
The distinguished author may be agreeably disappointed in the number of
American readers who will agree in a large measure with his conclusions as to
the causes of crime generally. I am inclined to think that the remedy which Dr.
Bonger proposes is more apt to elicit controversy than the correctness of his
diagnosis. The great value of Dr. Bonger’s work to Americans, however, will
be independent of the number of readers who concede the force of his
reasoning or accept the logic of his conclusions. Disagree with the author’s
conclusions as the reader may and its value to the reader will not be impaired.
One cannot take issue with the conclusions of a scholar based on study and
research, without an exercise of processes of the mind valuable to the reader,
and probably so to others. From the right quantity and quality of criticism
comes the truth. One of the most valuable portions of Dr. Bonger’s work will
be found in his own criticisms of the writings of other European authors,
particularly those comprising the so-called Italian and French schools.

“Criminality and Economic Conditions” is the nearest approach to an


exhaustive treatment of the question of the agencies productive of crime which
has thus far been published in this country. The [xx]work is a result of great
study and research, and little existing data can have been overlooked. Agree or
not with the conclusions of the author, doubt the force of his reasoning if one
will, nevertheless, such reasoning and conclusions have their basis in statistics
and data furnished, from which other reasoning or conclusions may be formed
if the reader thinks the author’s conclusions are not supported by the facts.
Whether existing economic conditions are fundamentally wrong, and crime is
but the natural concomitant of a false economic basis upon which society is
organized, is a controversial question which is so forcefully presented by the
author that the reader must concede that his views have been presented by a
master.

Dr. Bonger’s thesis, doubtless, will have the effect of increasing the number of
Americans who regard environment as the greatest contributory cause of crime
and who place heredity or innate criminality in a subordinate position, though
many may continue to regard these matters as of greater importance than the
author attributes to them. The author does not hesitate to express his contempt
for the theory recently espoused by some Americans that “sterilization” may be
an effective method of reducing the “army of criminals.” “One should be
inclined to ask,” he says, “if the advocates of ‘sterilization’ have never heard of
Australia, where a considerable number of inhabitants have descended from
the worst of criminals and where yet the rate of criminality is low.” The
Australian might reply that this is not a fair test, for at the time England was
transporting so many of her criminals to Australia, the English criminal code
was so drastic that “the worst of criminals” constituted but a small per cent of
those who became its victims. But this observation does not militate against the
correctness of the Doctor’s observation that “sterilization” is “as useful as the
efforts to stop with a bottle a brook in its course.” If the advocates of
“sterilization” are wrong in their theory, it is only illustrative of the fact that we
Americans have been so busy developing a new country that, until very recent
years, we gave no thought to the immense problem of the causes of crime, or
attempted to apply to the subject any sort of intelligent, to say nothing of
scientific, consideration. When at last it dawned upon a few of the American
people that the cost in dollars and cents of dealing with our crime problem, to
say nothing of the incidental economic waste, exceeded a billion dollars
annually, or, as Professor Münsterberg in one of his books forcibly puts it:
“that this country spends annually five hundred millions of dollars more on
fighting the existing crime [xxi]than on all its works of charity, education, and
religion”,—it began to be considered worth while to study this tremendous
social problem with a view, if possible, of improving conditions. Those who
investigated the subject found little in the way of statistics or reliable data upon
which to base a study of conditions with a view of applying remedies. Some
few had written upon various phases of the subject. It was not, however, until
the organization of the American Institute of Criminal Law and Criminology in
1909 that intelligent direction along practical lines was given to a study by
Americans of this great social and economic problem. The Journal of the
Institute was the first periodical of its kind published in the English language.
In Continental Europe a number of such journals were being published and
many students of the problem had contributed valuable works upon different
phases of the subject. The American Institute has deemed the quickest way for
Americans to become abreast of the best modern thought on criminal law and
criminology, is to make available for American readers the best scientific
thought of European writers, hence, “The Modern Criminal Science Series,” of
which Dr. Bonger’s work becomes one of the most valuable volumes.

Until very recent years, most American judges and prosecuting attorneys gave
little thought to the underlying causes of crime. It was the general assumption
that courts and court officers had performed their full functions when the guilt
or innocence of a defendant had been determined and he was discharged or
committed to some penal institution. Here again little thought was given to the
one incarcerated other than to hold and generally to exploit him until by law he
was entitled to be discharged. Those whose province it was to get men into
prison and those whose duty it was to keep them in custody gave little attention
to the question whether the convict was a better or a worse unit of society
when he came out than when he entered upon a prison term. Even less thought
was given to the more important question—why so many commit crime at all.
If normal human beings under normal conditions do not commit crime, then
crime is evidence of the abnormal, either in the person or in the condition. If
this is a correct hypothesis, then the administration of criminal law must to a
greater degree in the future than in the past be predicated upon a
comprehension and due consideration of this fact.

If, in order to materially reduce the quantum of crime, it is necessary to change


the economic basis upon which modern society rests and reorganize it “based
upon the community of the means of production”, [xxii]then the outlook for an
early diminution in the volume of crime may not be overly encouraging. Such
a change in the economic basis of society is hardly to be expected otherwise
than as the result of the slow process of social evolution. Progress in this
respect has not been perceptibly rapid since Moses gave to the world the Book
of Deuteronomy. Many abuses of our present economic system, however, may
be modified or abolished without waiting for or conceding the necessity of the
change which the eminent scholar holds is fundamental.
Again, in conclusion, let me reiterate that the value of Dr. Bonger’s work does
not depend upon an agreement with all the views of the author. The book will
bring to the American reader a depth and breadth of view most valuable to the
administrators of criminal law and to those interested in the wider field of
general social progress.

C C ,N ,
February 18, 1916. [xxiii]

1 Chief Justice of the Supreme Court of Nevada; Vice-President of the American Institute of Criminal
Law and Criminology. ↑

[Contents]
TRANSLATOR’S NOTE.
This translation is based upon the Amsterdam edition of 1905, but the
translator has been furnished by the author not only with special notes for the
American edition, but also with the latest corrections to the French text. Dr.
Bonger has also furnished a revised bibliography, and kindly wrote the
American preface in English. In the translation some slight condensation of the
work has been made, with the approval of the committee, by the omission of a
few passages of a parenthetical nature, in quotations and notes. The very
valuable bibliographical notes have been retained intact. Grateful
acknowledgment is due to the Editorial Committee for suggestions as to some
difficult legal terms, and to Mr. Georgio de Grassi for assistance in the
translation of Italian passages.

H P. H .

I , N.Y.,
September, 1914. [xxv]

[Contents]
CRIMINALITY AND ECONOMIC CONDITIONS
[xxvii]
PREFACE TO THE AMERICAN EDITION.
The resolution of the “Committee on Translations of the American Institute of
Criminal Law and Criminology” to include my book “Criminalité et conditions
économiques” among the European works, that were assigned for translation
was welcomed by me with gladness. The fact that the difference of language is
an obstacle for many to become acquainted with a book, is for its author very
disagreeable. This was also the reason which obliged me to publish my work
not in my own but in the French language.

I am fully convinced that my ideas about the etiology of crime will not be
shared by a great many readers of the American edition. As far as I can see, in
the English-speaking countries the causes of criminality are sought in man
himself rather than in his surroundings. Heredity, too, is considered there of
great importance. Hence the attempts to reduce the army of criminals by so-
called “sterilization.” Against this point of view my book is in sharp
opposition; I consider it one of the most fatal errors. There was a time in
Europe when it was thought with Lombroso that crime was rooted in man
himself; the progress of sociology has shown more and more clearly that the
roots are found outside man, in society. There is nothing more variable than
man! That heredity plays a great part on the scene of criminality has never
been proved. Have the advocates of “sterilization”, one should be inclined to
ask, never heard of Australia, where a considerable number of the inhabitants
are descended from the worst of criminals, and where yet the rate of
criminality is low? The army of prostitution has been for a great many
centuries by far more “sterile” than the army of criminals can ever be made,
and yet prostitution is not decreased; the increase and decrease of this
phenomena is ruled by social factors. In short, the effect of “sterilization”
seems to me as useful as the efforts to stop with a bottle a brook in its course,
as Manouvrier once called it. On the other hand I beg the adherents of the
individualistic theory of crime [xxviii]to take into consideration that in some
European countries the beginning of the rise of the lower classes, who form the
greatest contingent of criminals, has been sufficient to arrest the increase of
crime, even in many cases to occasion a decrease.
My book will thus be sure to meet with many disapproving critics on the other
side of the ocean. I fear them not. If only facts are opposed to facts, truth will
come to light. “Du choc des opinions jaillit la vérité!”

According to my undertaking I have stated in notes the principal literature of


the latest years. In concert with the desire of the Committee I have shortened
the text as much as possible. The whole passage about “race and crime” I have
omitted because—maintaining in general what I had written about it—I now
have much more to say on the subject, but the space therefor was not at my
disposition. For the same reason I left the passage on “Physical Environment
and Crime” as it was. The treatment in detail of both these questions will take
place in due time elsewhere.

I will not close this preface without assuring the Committee on Translations
how highly I value their broad view and large-minded resolution to give a
hearing to one whose opinions differ so much from the usual. To my translator,
my hearty thanks for the good care bestowed on my book.

W. A. B .

A ,
June, 1914. [xxix]

[Contents]
THE AUTHOR’S PREFACE TO THE ORIGINAL
EDITION.
Honorable mention has been given to the first part of this work, which was
written upon a subject proposed by the juridical faculty of the University of
Amsterdam, and entitled “A Systematic and Critical Exposition of the
Literature Dealing with the Relation between Criminality and Economic
Conditions.” To this exposition I have added the opinions of some additional
authors, and have treated some others more fully than in the original; but on
the whole this part of the work has been little changed. The second part, on the
other hand, is almost entirely new; though it is true that in my thesis I had
already marked out a line of investigation which, in my opinion, required a
profound study of the relation between criminality and economic conditions.
The period of one year fixed by the faculty was too limited a time in which to
give more than a brief survey of the question. I have left the exposition as it
was without restating it in the second part (now the more important division of
the work), although I am aware that objections might be made, especially as to
the form. However, I have not felt that these are of sufficient importance to
demand a complete recasting of the work.

I take advantage of this opportunity to express my sincere thanks to those who


have expressed their good will by lending me their aid; especially to my highly
esteemed colleague, Professor G. A. van Hamel, and my friends Dr. A.
Aletrino and N. W. Posthumus.

A ,
February, 1905. [xxx]

[Contents]

I have taken great pains neither to deride human actions, nor to


deplore them, nor to detest them, but to understand them.
—S . [xxxi]

[Contents]
INTRODUCTION.
In systematizing the literature of my subject I have pursued the following
method: I begin with some significant extracts from authors who wrote before
the birth of modern criminal science. After these I take up the statisticians, that
is to say, those who, without belonging to any special school of criminologists,
have treated the subject principally by the aid of statistics. Next I give an
exposition of the school which insists especially upon the individual factors in
crime, and ascribes only a secondary place to economic factors (the Italian
school); following this I treat of the school which considers the rôle played by
environment as very important (the French school); and afterwards that of the
bio-sociological doctrine which forms the synthesis of the two schools. Then
follow the “spiritualists”, that is to say the religious authors who have been
more or less influenced by modern criminal science; and finally, the authors
who belong to the “terza scuola”, and the socialists who consider the influence
of economic conditions as being very important or even decisive. The authors
coming under the same heading have been treated in chronological order.

Like every classification this is more or less arbitrary. Several authors might
have been placed under two different headings. We may add that as time goes
on the differences between the Italian and French schools are becoming less
and less marked, so that their opinions and those of the bio-sociologists no
longer show any great divergences as far as our subject is concerned. [1]
P O .
CRITICAL EXPOSITION OF THE
LITERATURE DEALING WITH THE
RELATION BETWEEN CRIMINALITY AND
ECONOMIC CONDITIONS.
[Contents]
CHAPTER I.
THE PRECURSORS.
AUTHORS WHO TREATED THE SUBJECT
BEFORE THE BIRTH OF MODERN CRIMINAL
SCIENCE.
[Contents]

I.

T M .1

In the first part of his “Utopia” More severely criticises the economic
conditions of his time in England, and adds some observations upon the
criminality of that period.

Raphael Hythloday, whom More makes the speaker in his work, and
through whom he expresses his own opinions, says:

“It chanced on a certain day, when I sat at the Cardinal’s table, there was
also a certain lay man cunning in the laws of your realm. Who, I cannot
tell whereof taking occasion, began diligently and earnestly to praise that
strait and rigorous justice, which at that time was there executed upon
felons, who, as he said, were for the most part twenty hanged together
upon one gallows. And, seeing so few escaped punishment, he said he
could not choose but greatly wonder and marvel, how and by what evil
luck it should so come to pass, that thieves nevertheless were in every
place so rife and so rank. [2]

“Nay, Sir, quod I (for I durst boldly speak my mind before the Cardinal)
marvel nothing hereat; for this punishment of thieves passeth the limits
of justice, and is also very hurtful to the public weal. For it is too
extreme and cruel a punishment for theft, and yet not sufficient to refrain
and withhold men from theft. For simple theft is not so great an offense,
that it ought to be punished with death. Neither is there any punishment

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