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Consider the example shown in Figure 13–9 . The initial net return is $70 in each activity, and there are 20 people in each activity. Suppose that instead of increasing the burglary penalty, we decrease the net return to lawful activity by half. This change is represented by a downward shift by $35 of the net-return curve for lawful activity. a. At the original allocation of 20 people in each sector, people will switch from _____ to _____ and _____ because . . . b. The switching noted in part ( a ) [increases, decreases] the net return to law- ful activity and [increases, decreases] the net return to crime. c. In the new equilibrium, the net return is [greater, less] than $70, the number of lawful workers is [greater, less] than 20, and the number of burglars is [greater, less] than 20. d. Draw a trio of curves like the ones shown in Figure 13–9 to illustrate the answers to (a ), ( b ), and ( c ). e. In the new equilibrium, the sum of burglars, robbers, and lawful workers is _____ , and the net return to burglary is [greater than, less than, equal to] the net return to lawful workers.
Chapter 13, Problem 10(choose chapter or problem)
Decrease in the Lawful Return
Consider the example shown in Figure 13-9. The initial net return is $70 in each activity, and there are 20 people in each activity. Suppose that instead of increasing the burglary penalty, we decrease the net return to lawful activity by half. This change is represented by a downward shift by $35 of the net-return curve for lawful activity.
(a). At the original allocation of 20 people in each sector, people will switch from _____ to _____ and _____ because…
(b). The switching noted in part (a) [increases, decreases] the net return to lawful activity and [increases, decreases] the net return to crime.
(c). In the new equilibrium, the net return is [greater, less] than $70, the number of lawful workers is [greater, less] than 20, and the number of burglars is [greater, less] than 20.
(d). Draw a trio of curves like the ones shown in Figure 13-9 to illustrate the answers to (a), (b), and (c).
(e). In the new equilibrium, the sum of burglars, robbers, and lawful workers is _____, and the net return to burglary is [greater than, less than, equal to] the net return to lawful workers.
Questions & Answers
QUESTION:
Decrease in the Lawful Return
Consider the example shown in Figure 13-9. The initial net return is $70 in each activity, and there are 20 people in each activity. Suppose that instead of increasing the burglary penalty, we decrease the net return to lawful activity by half. This change is represented by a downward shift by $35 of the net-return curve for lawful activity.
(a). At the original allocation of 20 people in each sector, people will switch from _____ to _____ and _____ because…
(b). The switching noted in part (a) [increases, decreases] the net return to lawful activity and [increases, decreases] the net return to crime.
(c). In the new equilibrium, the net return is [greater, less] than $70, the number of lawful workers is [greater, less] than 20, and the number of burglars is [greater, less] than 20.
(d). Draw a trio of curves like the ones shown in Figure 13-9 to illustrate the answers to (a), (b), and (c).
(e). In the new equilibrium, the sum of burglars, robbers, and lawful workers is _____, and the net return to burglary is [greater than, less than, equal to] the net return to lawful workers.
ANSWER:Step 1 of 7
The initial net return is $70 in each activity, and there are 20 people in each activity. Suppose that instead of increasing the burglary penalty, we decrease the net return to lawful activity by half.