Superfreakonomics Questions 1-5 Essay

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Super Freakonomics: Short Essay questions Chapter 1: Describe the evidence that suggests that Chicago prostitutes engage in price discrimination. In addition, explain why it is possible for this particular instance of price discrimination to be successful. There is a couple of different things that directly show how Chicago prostitutes engage in price discrimination, the first is by skin color. The book directly says “Prostitutes do not charge all customers the same price. Black customers, for instance, pay on average about $9 less per trick than white customers, while Hispanic customers are in the middle” (p 35.) Another big one is giving police officers “freebies”. Some of the more high class prostitutes were able to…show more content…
As for why this is even more successful? The police officers that are supposed to arrest and not allow prostitution (which causes complications for prostitutes) are being satisfied with “freebies” which keeps them happy, and the prostitutes free to keep business booming. Chapter 2: List the characteristics discussed in the book that are most effective in distinguishing likely terrorists from the more general population. In addition, use this information to explain the chapter’s title, i.e., explain why terrorists should buy life insurance. When it comes to distinguishing likely terrorists from the general population there are a group of characteristics that set these people apart. Most of the characteristics are linked to bank behavior: * “They opened their U.S. accounts with cash…roughly $4,000, usually at a branch of a large, well known bank” * “…regularly sent and received wire transfers to and from other countries…transactions were always below the limit that triggered the bank’s reporting requirements.” * “They tended to make one large deposit and then withdraw cash in small amounts over time.” * “Their banking didn’t reflect normal living expenses like rent, utilities…” * “…no typical monthly consistency in the timing of their deposits or withdrawals.” * “…didn’t use savings accounts…”
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