Suppose There Are Two Types of Fruit Pickers

question 9

Essay

Suppose there are two types of fruit pickers. Fast pickers bring in more than 10 units of fruit per day, while the slow pickers bring in fewer than 10 units per day. Johnson Farm pays pickers a flat rate of $50 per day, and Henry Farm pays pickers $5 for every unit picked. The pickers know their productivity level, but the farms don't know a picker's productivity until he or she starts working.
a. At which farm will the slow pickers choose to apply?
b. At which farm will the fast pickers choose to apply?
c. Which farm will have adverse selection in the applications?

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Definitions:

Congressional Assignments

The distribution of tasks, responsibilities, and roles to members of Congress, typically involving committee placements, leadership positions, and specific legislative duties.

Party Decline

The theory that political parties have become less influential and effective in political systems, particularly in guiding political action and mobilizing voters.

Grassroots Groups

are organizations that originate and operate at the local or community level, often mobilizing community members to effect change in public policy or social attitudes.

Party Bosses

Influential leaders in a political party who control votes and dictate appointments, often associated with a patronage and machine politics.