Question

1.) Littering in California is a misdemeanor. A first-time conviction may result in eight hours of community service picking up trash and a fine of up to $1,000, even though the social cost of the litter is likely much lower than this amount. Does the relatively large fine make good economic sense?

Answer 1

Depends on person to person where the opportunity cost comes into picture in the scenario because of the fact that if a person earns more than thousand Dollars a day, then it would be better for him to pay thousand dollars and this perfectly makes an economic sense as he would get a net amount after getting benefit from the opportunity cost and therefore it can be mentioned that only in that scenario it makes economic sense but which is unlikely as most of the the United States citizens earn less than that amount and therefore in order to raise the amount about the opportunity cost, this can prove to be beneficial and making a perfect economics and so that this would discourage littering.