If Your Economics Class Was Graded on a Curve and Everyone

question 140

Multiple Choice

If your economics class was graded on a curve and everyone agrees to study only half as much, everyone would get the same grade that they otherwise would earn. You, however, will earn an A if you study more than the others, a C if you study the same amount as others, and an F if everyone else studies more than you. You don't like studying, but you'd rather study and get an A than get a C without studying, or study and get a C than get an F without studying. All the students in your class get together and agree not to study but have no way of verifying if anyone does study. What is it in your best interest to do?

• A) study
• B) not study
• C) drop the class
• D) randomize over studying and not studying

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Definitions:

Government Spending

Government spending involves expenditures by government bodies on public services, infrastructure, defense, social welfare, and more, impacting the economy’s overall fiscal stance.

Resource Availability

This refers to the accessibility and abundance of natural, human, and capital resources which can be used for production.

Pioneering Spirit

The attitude or approach characterized by innovation, taking risks, and trying new things, often in exploration or business.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.