Scenario: Jim and Janis Must Complete a Task Together at Their

question 175

Multiple Choice

Scenario: Jim and Janis must complete a task together at their job. Jim can put no effort, low effort, or high effort into the job, while Janis, being more conscientious than Jim, has choice of low effort or high effort. Their compensation, summarized in the payoff matrix below (in thousands of dollars) , depends on the quality of their work, which in turn depends on the efforts they put into the task. The first number in each cell is Jim's payoff, and the second number is Janis' payoff.

-Refer to the scenario above.If a < 3,then ________ form a Nash equilibrium.

• A) low efforts by both workers
• B) high efforts by both workers
• C) low effort by Jim and high effort by Janis
• D) high effort by Jim and low effort by Janis

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Definitions:

Cause-and-Effect Relationships

The principle that an action or event (cause) will produce a certain response or outcome (effect) in a given context.

Descriptive

Pertaining to the detailed description of characteristics, behaviors, or the setting of an event without imposing any interpretations or judgments.

Correlational Research

A method of research that examines the relationship between two or more variables to determine if a change in one is associated with a change in the other(s).

Cause-and-Effect Relationship

A connection between two events where one is the result of the other or others.