Refer to Scenario 17.5. The owners can't know whether the workers ...

[pane00]

Refer to Scenario 17.5. The owners can't know whether the workers are exerting high or low effort if income is
 
  A) 5000.
  B) 7000.
  C) above 7000.
  D) 13,000.
  E) above 13,000.

Question 2

Refer to Scenario 17.5. If a fixed wage of 3000 is given the individual worker, the result will be
 
  A) low effort 75 of the time.
  B) low effort 25 of the time.
  C) low effort.
  D) high effort.
  E) high or low effort depending on whether the worker thinks the 3000 is an acceptable wage.

[Briannahope]

Answer to Question 1

B

Answer to Question 2

C

[pane00]

Excellent

[tranoy]

Gracias!