In the no-shirking model, the expected payoff of the worker who shirks is (1 t)w + tjB + t(1 − j)(w – u) Explain what each of the following component in the formula represents: (1-t) is... w is... t is ... j is.. B is... (1-j) is... (w - u) is... Choose... Choose... Choose... Choose... Choose... Choose... ✓ Choose... the probability of finding another identical job if fired. the probability that shirking is not detected by the employer. the payoff of a worker who shirks and is not detected. the value of a job in equilibrium. ( " 4 « the probability of remaining unemployed if fired. the unemployment benefit. the probability that a shirking worker is detected by the employer and fired.
In the no-shirking model, the expected payoff of the worker who shirks is (1 t)w + tjB + t(1 − j)(w – u) Explain what each of the following component in the formula represents: (1-t) is... w is... t is ... j is.. B is... (1-j) is... (w - u) is... Choose... Choose... Choose... Choose... Choose... Choose... ✓ Choose... the probability of finding another identical job if fired. the probability that shirking is not detected by the employer. the payoff of a worker who shirks and is not detected. the value of a job in equilibrium. ( " 4 « the probability of remaining unemployed if fired. the unemployment benefit. the probability that a shirking worker is detected by the employer and fired.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![In the no-shirking model, the expected payoff of the worker who shirks is
(1 t)w + tjB + t(1 − j)(w – u)
Explain what each of the following component in the formula represents:
(1-t) is...
w is...
t is ...
jis..
B is...
(1-j) is...
(w - u) is...
Choose...
Choose...
Choose...
Choose...
Choose...
Choose...
Choose...
the probability of finding another identical job if fired.
the probability that shirking is not detected by the employer.
the payoff of a worker who shirks and is not detected.
♦
◆
♦
◆
the value of a job in equilibrium.
the probability of remaining unemployed if fired.
the unemployment benefit.
the probability that a shirking worker is detected by the employer and fired.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F38f97593-f469-4a44-ba4b-2b1644ebf5bc%2Faaa4c1f6-d1c1-499c-b09f-09711075c03c%2Fplrgbp_processed.png&w=3840&q=75)
Transcribed Image Text:In the no-shirking model, the expected payoff of the worker who shirks is
(1 t)w + tjB + t(1 − j)(w – u)
Explain what each of the following component in the formula represents:
(1-t) is...
w is...
t is ...
jis..
B is...
(1-j) is...
(w - u) is...
Choose...
Choose...
Choose...
Choose...
Choose...
Choose...
Choose...
the probability of finding another identical job if fired.
the probability that shirking is not detected by the employer.
the payoff of a worker who shirks and is not detected.
♦
◆
♦
◆
the value of a job in equilibrium.
the probability of remaining unemployed if fired.
the unemployment benefit.
the probability that a shirking worker is detected by the employer and fired.
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