Situation 33-1 Suppose that the equation that represents the expected benefits of burglary for a given prospective criminal is as follows: EB = Ps x Loot The criminal's cost equation is as follows: EC = [Pp x (I + F)] + AC Where: EB is the expected benefits of burglary Ps is the probability of successfully burglarizing a house Loot is the dollar take from the burglary EC is the expected costs of
burglary Pp is the probability of imprisonment I is the income the criminal gives up if caught and imprisoned F is the dollar value the criminal puts on freedom AC is the anguish cost of committing a burglary Refer to Situation 33-1. If the prospective criminal sets the following values: Ps = 65 percent Loot = $20,000 Pp = 20 percent I = $30,000 F = $15,000 AC = $5,000 The prospective criminal's expected benefit from committing the burglary is ______________ and his expected cost of committing the burglary is _______________. Economic theory tells us that under these circumstances, the prospective criminal ______________ commit the burglary.
A) $13,000; $14,000; will
B) $13,000; $14,000; will not
C) $6,667; $50,000; will not
D) $57,500; $50,000; will
B
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In examining two variables, we find that as one variable changes, the other changes. These variables are said to be
A) statistics. B) independent. C) casually related. D) correlated. E) significantly related.
With no international trade, the U.S. price of wheat is lower than the world price of wheat
This indicates that the United States ________ a comparative advantage in the production of wheat and with international trade, the United States will ________ wheat. A) has; export B) has; not trade C) has; import D) does not have; export E) might have; export