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

question 18

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 $250 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)only in the limit as H approaches infinity.
• B)if 16 < H < 53.33.
• C)for all positive values of H.
• D)if 16 < H < 26.67.
• E)if 14 < H < 23.33.

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Definitions:

Working Through

A process in psychotherapy aimed at helping clients understand, confront, and resolve their issues and conflicts.

Intrapsychic Conflict

A psychological struggle occurring within the mind of an individual, often part of psychoanalytic theories.

Drive Theory

A psychological perspective that posits human behavior is motivated by innate, biological drives such as hunger, thirst, and sexuality.

Libido

In psychoanalytic theory, a term describing the energy or drive behind human sexuality and desires, originally formulated by Sigmund Freud.