It Is Spring, and Several Graduates of State U Are

question 57

Multiple Choice

It is spring, and several graduates of State U are seeking employment. State U graduates have evenly distributed GPAs, from 2.0 to 4.0, with an average GPA of 3.0. The largest employer in town, Acme Dynamite, is interviewing candidates, hoping to hire a few hard workers. While Acme does not require students to submit a transcript with their applications, the hiring officer believes that high GPAs signal a willingness to work hard. Gerry is a recent graduate if State U and is applying for a job with Acme. Gerry's GPA is 2.9. Should Gerry include a transcript with his job application?

• A)No, because his GPA is worse than average.
• B)No, because Acme did not request it.
• C)Yes, because students with higher-than-average GPAs will always include a transcript, so if Gerry doesn't send a transcript, Acme will infer that Gerry's GPA is even lower than it is.
• D)Yes, because if he doesn't send a transcript, Acme will infer that Gerry is willing to work harder than he actually wants to work.

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Definitions:

Excess Burden

The additional cost to society beyond taxes collected resulting from inefficiencies in market outcomes due to taxation or regulations.

Tax Revenue

Funds accumulated by governments as a result of taxation.

Inelastic

Describing demand that does not change significantly when the price of a good or service changes.

Excess Burden

The cost to society created by market inefficiency, particularly through the misallocation of resources or distortions in the market.