The Figure Shown Represents the Payoffs Involved When Sarah and Joe

question 41

Multiple Choice

The figure shown represents the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.According to the figure:

• A)this game has no stable equilibrium.
• B)Sarah and Joe will each act in self-interest and achieve a stable, but less than optimum, equilibrium.
• C)Sarah and Joe will each act in self-interest and achieve an optimum equilibrium that is stable.
• D)Sarah and Joe are incentivized to put forth high effort.

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Definitions:

Physical Worlds

The tangible environment around us, consisting of matter and energy, and is studied through the natural sciences.

Theoretical Perspective

A specific viewpoint or set of principles that guides research and understanding in a field of study, shaping hypotheses and methodologies.

Lifespan Development

The field of study that examines patterns of growth, change, and stability in behavior that occur throughout the entire life span.

Scientific Evidence

Information and data that serve to either support or counter scientific hypotheses or theories, derived from scientific methods.