Question: 1. Classify the following precautions against crime into ex ante observable and ex ante unobservable, and explain your answer: private guards in stores, auto alarms, "quick-dial" emergency phone systems (911 numbers in the United States), hidden cameras, and plainclothes detectives.
2. Assume that burglars correctly believe that many people in your neighborhood keep guns. How might this fact increase your security? How might this fact endanger you?