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

question 22

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.Safe workers can be hired for a per-period wage of $190 and risky workers can be hired for a per-period wage of $210.What are the firm's profits if it hires a safe worker?

• A) $5
• B) $10
• C) $20
• D) $30
• E) $50

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Definitions:

Ecological Pyramids

Graphical representations showing the relative amounts of energy or matter contained within each trophic level in a given ecosystem.

Pyramid of Numbers

A graphical representation showing the number of organisms at different trophic levels in an ecosystem, typically decreasing from producers to top predators.

Photosynthesis

The process by which green plants and certain other organisms transform light energy into chemical energy, using carbon dioxide and water to produce glucose and oxygen.

Animal Respiration

The process by which animals exchange gases with their environment, taking in oxygen and releasing carbon dioxide, typically involving lungs or gills.