Assume That There Are Two Types of Workers: Safe and Risky.At

question 9

Multiple Choice

Assume that there are two types of workers: safe and risky.At the beginning of the first period a firm must decide to hire a safe or risky worker.Safe workers have constant ability worth $200 per period.There is a 50 percent chance a risky worker will have ability worth $300 per period and a 50 percent chance a risky worker will have ability worth $100 per period.What is the risky worker's average productivity?

• A) $100
• B) $200
• C) $300
• D) $400
• E) $500

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Definitions:

Explicit Rules

Clearly defined codes of conduct, procedures, or guidelines that are formally established and communicated.

Convergent Thinking

A thought process that aims at deriving the best possible answer to a problem from a set of potential solutions, focusing on logical and systematic approaches.

Divergent Thinking

A method of thinking that explores multiple possible solutions in order to generate creative ideas.

Janusian

Characterized by the simultaneous consideration of contrary or opposing ideas or concepts, often resulting in novel solutions or insights.