Figure 16.2

-According to figure 16.2 in each panel the potential participant faces a fixed participation cost.Mary faces a fixed monetary cost such as _________ and Jane faces a fixed time cost such as _____________.
A) The cost of buying a bus ticket; the time it takes to walk to work
B) The cost of tools; time spent at workfare job
C) Time on the bus to work; Tools needed for the job
D) Explicit monetary payment for getting the higher paying job; leisure time given up in exchange for work hours

Question

Figure 16.2
 
-According to figure 16.2 in each panel the potential participant faces a fixed participation cost.Mary faces a fixed monetary cost such as _________ and Jane faces a fixed time cost such as _____________.
A) The cost of buying a bus ticket; the time it takes to walk to work 
B) The cost of tools; time spent at workfare job 
C) Time on the bus to work; Tools needed for the job 
D) Explicit monetary payment for getting the higher paying job; leisure time given up in exchange for work hours

Quizplus · Accepted Answer

In the panel where Mary faces a fixed participation cost, the cost is represented by a fixed monetary cost, indicated by the dollar sign. This could be interpreted as the cost of buying a bus ticket to get to work. In contrast, in the panel where Jane faces a fixed participation cost, the cost is represented by a fixed time cost, indicated by the clock symbol. This could be interpreted as the time it takes to walk to work, as opposed to Mary who can pay for transportation. Choice B, C, and D are not supported by the information given in the figure.

Figure 16.2 -According to Figure 16.2 in Each Panel the Potential Participant