Economics 15th Edition by James Gwartney,Richard Stroup,Russell Sobel,David Macpherson

Exercise 5

Consider the following questions:
a. Do you think that your work effort is influenced by whether there is a close link between personal output and personal compensation (reward)? Explain.
b. Suppose the grades in your class were going to be determined by a random drawing at the end of the course. How would this influence your study habits?
c. How would your study habits be influenced if everyone in the class was going to be given an A grade? How about if grades were based entirely on examinations composed of the end of chapter questions in the textbook?
d. Do you think the total output of a nation will be influenced by whether or not there is a close link between the productive contribution of individuals and their personal reward? Why or why not?