Discussion Questions

Group Number: Group Member Name:

I. Selected article or media source?

a. Author: Not Available

b. Title: Secrets and agents

c. Publisher: The Economist

d. Date of Publication: July 23rd 2016

e. Internet Address or Link: http://www.economist.com/news/economics-brief/21702428-

george-akerlofs-1970-paper-market-lemons-foundation-stone-information

II. Instructor Questions

1. What topic(s) in this article are relevant to the economic subjects we are covering in this unit?

The topics covered in this article are economical asymmetry and moral hazard.

2. Is this article mostly positive (factual) or mostly normative (opinion)? Why?

This article is mostly normative.

3. What about this article potentially makes it a reliable source of information?

Strong arguments in this this article potentially makes it a reliable source of information.

4. What about this article potentially makes it an unreliable source of information?

Lack of proper reference in this article potentially makes it an unreliable source of

information.
III. Discussion Questions

1. Do you think credit scores should be used to evaluate job applicants? Why or why not?

I don’t think so. This reduces talent and skills and encourages knowledge only.

2. Do you agree or disagree that a college degree is a signal of talent? Why or why not?

I disagree. A college degree is not a sign of talent. Degree is awarded to everyone in the

college on the base of knowledge but only some are talented.

3. Do you agree or disagree that a college degree makes workers more productive? Why or why

not?

Yes I agree. Skilled and educated workforce combined makes a great positive impact on

society.

4. If you were a manager, in a perfectly competitive industry, would you be willing to pay

efficiency wages? Why or why not?

Yes I would pay efficiency wages because it would encourage workers to do more and more.

5. Dr. Akerlof’s paper was originally rejected. Thirty years later he was awarded the Nobel

Prize for his work. What are your thoughts on that turn of events?

He provided a different idea that everyone was reluctant to accept but when it was renowned,

it was awarded a noble prize.