Situation 33-1 Suppose That the Equation That Represents the Expected

question 25

Multiple Choice

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 = 50 percent
Loot = $30,000
Pp = 10 percent
I = $10,000
F = $25,000
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)$15,000; $8,500; will
• B)$15,000; $8,500; will not
• C)$15,000; $40,000; will not
• D)$17,500; $12,000; will

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Definitions:

Shade Avoidance

The tendency of plants that are adapted to high light intensities to grow taller when they are closely surrounded by other plants.

Phytochrome

A photoreceptor in plants that detects light to regulate various processes, such as germination, flowering, and shade avoidance.

Circadian Rhythm

An internal rhythm that approximates the 24-hour day. See biological clocks.

Cryptochrome

A proteinaceous pigment that strongly absorbs blue light; implicated in resetting the biological clock in plants, fruit flies, and mice.