Quiz 4B-Micro II

Quiz 4B-Micro II - BSc II-Sec A Microeconomics Spring 2011...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Microeconomics Spring 2011 Quiz 4B Lahore School of Economics Microeconomics II BSc 2 – Section A Quiz 4B – Total Points: 40 1. Standardized tests are sometimes criticized by parents who claim that their kids  spend too much time studying for them. Under what circumstances is this valid  claim? Shed light on the concept of asymmetric information while explaining the  answer. (5 points) Standardized test scores serve as a signal for both students and schools. Students can signal ability through high scores. Secondary schools use test scores as a signal of school quality. If schools spend class time taking practice tests and other preparations for tests such as the SAT and ACT exams, the amount of time spent on regular curriculum is reduced. Further, if colleges and universities do not regard standardized test scores as a good signal, they may not weigh them heavily in admissions decisions. Refer to the following diagram: Joe wants to achieve the highest position possible with the XYZ Co. During the  interview, he tells them he is capable of performing many difficult tasks. The  company feels there is a10% chance he is lying. Given the payoff matrix in the 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/13/2012 for the course ECON 121 taught by Professor Adam during the Spring '11 term at Bunker Hill.

Page1 / 4

Quiz 4B-Micro II - BSc II-Sec A Microeconomics Spring 2011...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online