Suppose That in Enigma, Ohio, Klutzes Have a Productivity of $1,000

question 6

Multiple Choice

Suppose that in Enigma, Ohio, klutzes have a productivity of $1,000 and kandos have a productivity of $5,000 per month. You can't tell klutzes from kandos by looking at them or asking them, and it is too expensive to monitor individual productivity. Kandos, however, have more patience than klutzes. Listening to an hour of dull lectures is as bad as losing $300 for a klutz and $150 for a kando. There will be a separating equilibrium in which anybody who attends a course of H hours of lectures is paid $5,000 per month and anybody who does not is paid $1,000 per month

• A) if 13.33 < H < 53.33.
• B) only in the limit as H approaches infinity.
• C) if 13.33 < H < 26.67.
• D) for all positive values of H.
• E) if 11.67 < H < 23.33.

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Definitions:

Homeostasis

The tendency to maintain equilibrium by adjusting physiological or psychological processes.

Primary Drives

Basic, innate drives that motivate behavior essential for survival, such as hunger, thirst, and avoidance of pain.

Hull

An American psychologist who developed the drive-reduction theory, emphasizing the role of biological needs in motivation and behavior.

Stimulus-Response

The basic concept that a specific stimulus will elicit a specific, predictable response in an organism.