Figure 212 Shows the Benefit Functions for Low-Ability Workers and High-Ability

Multiple Choice

Figure 21.2 shows the benefit functions for low-ability workers and high-ability workers (A and B) ,along with one indifference curve for each worker type (C and D) .The employer cannot observe worker type directly but has created two positions,E and F,as a screening mechanism.Which of the following is true?

A) Curve A is an indifference curve for a low-ability worker, and curve B is an indifference curve for a high-ability worker.
B) Curve A is the benefit curve for high-ability workers, and curve B is an indifference curve for a high ability worker.
C) Curve A is an indifference curve for a high-ability worker, and curve C is the benefit curve for high-ability workers.
D) Curve A is the benefit curve for high-ability workers, and curve C is an indifference curve for a high ability worker.