It's two bits: lazy or industrious, clever or stupid.

So four combinations.

The other two options are

1. clever and stupid

2. industrious and lazy

Neither of those options make much sense. They are choosing both values of one parameter and no values are choosen for the other parameter

You can't be lazy and industrious at the same time, nor clever and stupid. There are only four valid options.

Oh, yes you can. Never seen anyone waste a whole day grinding in a game? Never seen someone pour genius into a non-problem? These things happen all the time, as a result of exactly those intersections.