Exercises: 1.3, 1.8
1A.1, 1A.3, 1A.5, 1A.6, 1A.7
1.3) Bank robberies are on the rise in New Jersey, and according to the FBI this
increase has little to do with the economic downturn. The FBI has claims that they
have allowed themselves to become easy targets by refusing to install clear acrylic
partitions called bandit barriers,” which separate bank tellers from the public. Of
the 193 banks robbed in New Jersey in 2008, only 23 had these barriers, and of the
40 banks robbed in the first 10 weeks of 2009 only 1 had a bandit barrier. According
to a special agent with the FBI, Bandit barriers are a great deterrent. We’ve talked
to guys who rob banks and as soon as they see a bandit barrier, they go find another
bank. Despite this finding, many banks have been reluctant to install these barriers.
Would banks have a strong incentive to install bandit barriers to deter robberies?
Why then do so many banks not do so?
As explained throughout the chapter, it is less expensive for the bank to deal or
manage with these bank robberies, than it is to actually install the “bandit barriers.”
Therefore they prefer to not install the barriers.
1.8) In a paper written by Bentley college economists Patricia M. Flynn and Michael
A. Quinn, the authors state, “We find evidence that Economics is a good choice of
major for those aspiring to become a CEO. When adjusting for size of the pool of
graduates, those with undergraduate degrees in Economics are shown to have had a
greater likelihood of becoming an S&P 500 CEO than any other major. “A list of
famous economics majors published by Marietta college includes business leaders
Warren Buffet, Donald Trump, Ted Turner, and Sam Walton as well as former
presidents George H.W. Bush, Gerald ford, and Ronald Regan. Why might studing