   Chapter 19, Problem 14QP

Chapter
Section
Textbook Problem

Do the following: (1) make an observation; (2) identify a question based on the observation; (3) put forth a theory to answer the question; and (4) identify at least two predictions based on the theory.

To determine

Determine an observation, identify a question based on observation, develop a theory to answer the question, and identify two predictions based on the theory.

Explanation

The observation: Criminals are not rational.

The question based on observation: Are criminals rational?  Does their behavior respond to changes in costs and benefits?

The Theory: A criminals acts is based on the cost and benefit from the activity. Suppose the cost is higher than the benefit, there will a reduction in the crime rate. Suppose the benefit is higher than cost, then the crime rate will increase. Suppose the benefit is equal to cost, then the decision will be based on their choice similar to tossing a coin...

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