Suppose There Are Two Types of Fruit Pickers

question 19

Multiple Choice

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. There will be an adverse selection problem in applications at _____.

• A) Johnson Farm
• B) Henry Farm
• C) both farms
• D) neither farm

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Definitions:

Corresponding Emotion

An emotional response that is directly related to, or caused by, a specific event, action, or thought.

Facial-Feedback Hypothesis

The theory that suggests the act of expressing a facial emotion can cause the emotional experience itself, such as smiling leading to feelings of happiness.

Positive Feelings

Emotions and sentiments that are pleasant or affirmative, such as happiness, joy, or satisfaction.

Simulating Anger

The act of pretending or mimicking the emotion of anger without actually feeling it, often for the purpose of study or understanding its effects.