Susan Sheppard, Creative Design Manager at Word-of-Mouth Marketing Group, is consistently bullied by her colleague, Alexandra Woodward, the boss's sister. Alexandra has been working at the firm a little over a month, after quitting her job as a Rare Artifacts Curator at the Museum of Indigenous Culture. During her short time at Word-of-Mouth, she has shown a propensity for "self-governance" and defiance. Extra work has been heaped on Sheppard, and she has had to face sarcasm and a constant barrage of inappropriate comments from her newly appointed subordinate.

Alexandra is constantly creating more work for Susan, yet Susan completes all of this additional work and, in turn, Alexandra continues her behavior. Which of the following methods to reward performance explains why Alexandra continues this behavior?

A) Punishment
B) Positive Reinforcement
C) Extinction
D) Probation
E) Negative Reinforcement

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?