Figure 212 Shows the Benefit Functions for Low-Ability Workers and High-Ability

question 2

Multiple Choice

Figure 21.2 shows the benefit functions for low-ability workers and high-ability workers (A and B) ,along with one indifference curve for each worker type (C and D) .The employer cannot observe worker type directly but has created two positions,E and F,as a screening mechanism.Which of the following is true?

• A)High- and low-ability workers will choose position E.
• B)High-ability workers will choose position E and low ability workers will choose position F.
• C)High- and low-ability workers will choose position F.
• D)High-ability workers will choose position F and low ability workers will choose position E.

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Definitions:

Rhizarians

A group of mostly unicellular eukaryotes characterized by their amoeba-like movement mechanism, often through pseudopods.

Protist

Any member of a group of diverse eukaryotic, mostly unicellular organisms, including algae, amoebas, and many others.

Late Blight

A serious disease of potatoes and tomatoes caused by the oomycete Phytophthora infestans, leading to significant crop loss.

Phytophthora

A genus of plant-damaging oomycetes, commonly referred to as water molds, responsible for a range of plant diseases.