Question

Suppose the blue curve in 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.

Answer 1

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.



2.1. Suppose the first bill that is introduced mandates that security be doubled so that the probability of catching a terrorist at the border is increased from 10% to 20%. Assuming the security bill does not change the position of the blue curve, move the dot to one of the other snap-to points to show the effects of such a bill.

Tool tip: Drag the dot outlined in red near one of the positions marked by a plus sign. When you release, the dot will snap to the nearest position. When you are satisfied with your answer, click the Submit Answer button.