Suppose you were to develop an economic model of criminal activities, say, the hours spent in criminal activities (e.g., selling illegal drugs). What variables would you consider in developing such a model? See if your model matches the one developed by the Nobel laureate economist Gary Becker.

TABLE 1.5 Seasonally Adjusted M1 Supply: 1959:01-1999:07 (billions of dollars)

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138.8900 139.7400 1959:01 1959:07 1960:01 139.3900 139.6900 140.6800 141.1700 141.7000 139.9800 141.9000 139.8700 141.0100 139.7500 140.4700 139.5600 140.3800 139.6100 139.9500 139.5800 1960:07 1961:01 140.8600 142.6600 140.1800 141.0600 142.9200 141.3100 141.1800 141.8700 140.9200 142.1300 140.6900 142.8800 141.6000 1961:07 143.4900 143.7800 144.1400 144.7600 145.2000 146.4000 146.7100 1962:01 1962:07 145.2400 146.4600 145.6600 146.5700 145.9600 146.3000 146.8400 147.2900 146.5800 147.8200 148.9000 151.7800 150.4300 153.2900 155.6200 1963:01 1963:07 148.2600 149.1700 151.9800 149.7000 152.5500 150.3900 153.6500 151.3400 1964:01 153.7400 154.3100 154.4800 154.7700 155.3300 160.3000 162.1900 1964:07 1965:01 156.8000 160.7100 157.8200 160.9400 158.7500 161.4700 159.2400 162.0300 159.9600 161.7000 1965:07 1966:01 1966:07 163.0500 169.0800 163.6800 169.6200 164.8500 170.5100 165.9700 171.8100 166.7100 171.3300 167.8500 171.5700 170.3100 170.8100 171.9700 171.1600 171.3800 172.0300 1967:01 1967:07 171.8600 178.1300 172.9900 179.7100 174.8100 180.6800 174.1700 181.6400 175.6800 182.3800 177.0200 183.2600 1968:01 184.3300 184.7100 185.4700 186.6000 187.9900 189.4200 1968:07 1969:01 1969:07 190.4900 198.6900 191.8400 199.3500 192.7400 200.0200 194.0200 196.0200 200.8100 197.4100 201.2700 200.7100 201.6600 206.2200 201.7300 205.0000 202.1000 205.7500 202.9000 206.7200 203.5700 207.2200 203.8800 207.5400 1970:01 1970:07 207.9800 209.9300 211.8000 212.8800 213.6600 214.4100 1971:01 1971:07 215.5400 224.8500 217.4200 225.5800 218.7700 226.4700 220.0000 227.1600 222.0200 227.7600 223.4500 228.3200 1972:01 1972:07 230.0900 238.7900 232.3200 240.9300 234.3000 243.1800 235.5800 245.0200 235.8900 246.4100 236.6200 249.2500 256.6900 1973:01 251.4700 252.1500 251.6700 252.7400 254.8900 1973:07 1974:01 257.5400 263.7600 257.7600 265.3100 257.8600 266.6800 259.0400 267.2000 260.9800 267.5600 262.8800 268.4400 1974:07 1975:01 1975:07 269.2700 270.1200 275.0000 271.0500 276.4200 285.6900 272.3500 276.1700 273.7100 279.2000 274.2000 282.4300 287.0700 273.9000 283.6800 284.1500 285.3900 286.8300 1976:01 1976:07 288.4200 297.2000 290.7600 299.0500 292.7000 299.6700 294.6600 302.0400 295.9300 303.5900 296.1600 306.2500 1977:01 1977:07 308.2600 320.1900 311.5400 322.2700 313.9400 324.4800 316.0200 326.4000 317.1900 328.6400 318.7100 330.8700 1978:01 334.4000 335.3000 336.9600 339.9200 344.8600 346.8000 1978:07 1979:01 347.6300 358.6000 349.6600 359.9100 352.2600 362.4500 379.2800 388.1300 353.3500 368.0500 355.4100 369.5900 357.2800 373.3400 1979:07 1980:01 1980:07 377.2100 385.8500 378.8200 389.7000 380.8700 383.4400 380.8100 384.6000 381.7700 389.4600 394.9100 400.0600 405.3600 409.0600 410.3700 408.0600 418.6900 1981:01 1981:07 410.8300 427.9000 414.3800 427.8500 427.0600 428.4500 424.4300 430.8800 425.5000 436.1700 427.4600 1982:01 1982:07 442.1300 449.0900 441.4900 452.4900 442.3700 457.5000 446.7800 464.5700 446.5300 471.1200 447.8900 474.3000 1983:01 476.6800 483.8500 490.1800 513.4100 530.7800 492.7700 499.7800 504.3500 518.5300 536.5900 1983:07 1984:01 508.9600 524.4000 511.6000 526.9900 517.2100 534.0300 520.7900 540.5400 1984:07 542.1300 542.3900 543.8600 543.8700 547.3200 551.1900 1985:01 1985:07 555.6600 590.8200 562.4800 598.0600 565.7400 604.4700 569.5500 607.9100 575.0700 611.8300 583.1700 619.3600 1986:01 1986:07 620.4000 672.2000 624.1400 680.7700 632.8100 688.5100 640.3500 695.2600 652.0100 705.2400 661.5200 724.2800 1987:01 729.3400 729.8400 733.0100 743.3900 756.5000 767.5700 783.6300 746.0000 743.7200 749.6800 779.1000 1987:07 744.9600 748.6600 746.9600 757.0700 752.8300 771.6800 1988:01 755.5500 761.1800 1988:07 1989:01 783.4000 784.9200 785.0800 783.4000 784.8200 782.7400 784.4600 774.7900 786.2600 774.2200 778.8200 1989:07 779.7100 781.1400 782.2000 787.0500 787.9500 792.5700 797.6500 1990:01 1990:07 794.9300 811.8000 801.2500 821.8300 806.2400 820.3000 804.3600 822.0600 824.5600 810.3300 817.8500 1991:01 826.7300 832.4000 838.6200 842.7300 848.9600 858.3300 887.9500 950.7800 954.7100 896.7000 1991:07 1992:01 862.9500 868.6500 910.4900 925.1300 936.0000 871.5600 878.4000 943.8900 1992:07 1993:01 1030.900 964.6000 975.7100 1033.150 988.8400 1004.340 1037.990 1016.040 1066.220 1024.450 1075.610 1047.470 1993:07 1085.880 1095.560 1105.430 1113.800 1123.900 1129.310 1994:01 1132.200 1994:07 1151.490 1136.130 1151.390 1139.910 1152.440 1141.420 1150.410 1142.850 1150.440 1145.650 1149.750 1995:01 1150.640 1995:07 1146.500 1146.740 1146.100 1146.520 1142.270 1149.480 1136.430 1144.650 1133.550 1144.240 1126.730 1996:01 1122.580 1117.530 1122.590 1095.610 1072.420 1124.520 1116.300 1115.470 1996:07 1112.340 1997:01 1080.520 1102.180 1076.200 1082.560 1067.450 1080.490 1063.370 1081.340 1065.990 1997:07 1067.570 1998:01 1073.810 1072.080 1076.020 1064.820 1080.650 1062.060 1082.090 1067.530 1078.170 1074.870 1077.780 1998:07 1075.370 1072.210 1074.650 1080.400 1088.960 1093.350 1999:01 1091.000 1999:07 1099.530 1092.650 1102.400 1102.010 1093.460 1108.400 1104.750 1101.110