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

question 8

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:

Perceived Behavioral Control

An individual’s beliefs about whether he or she can actually perform the behavior in question.

Attitude-Behavior Consistency

The extent to which an individual's attitudes are reflected in their actual behaviors.

Abstract Concept

An idea that does not have a physical form or is not concretely observable.

Predictive Value

The extent to which a score or measurement can accurately forecast or predict a specific outcome.