Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Chapter 8.A, Problem 1TY
To determine
Total, Average and Marginal grades.
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Explain how studying for an exam is subject to the law of diminishing marginal productivity.
The law of diminishing marginal productivity implies that the optimal amount of studying is however many hours will lead to your highest possible score. After this point, your performance falls and you should not study any more.
Assuming you organize your studying reasonably, you will focus on the parts of the text that are most likely to show up on the exam and most likely to raise your grade. As you study less relevant material, your additional time spent studying will yield fewer additional points on the exam. At some point, additional studying can have a negative return.
The law of diminishing marginal productivity pertains to studying in a group only. If you study with one or two people, your grade will likely improve because they can teach you information you don’t know. However, at some point, as you add another person, the grades for everyone decline.
The more and…
can you please explain this concept with other examples as well
Consider the following grading system for a hypothetical economics class: At the end of the semester all the grades for all students are calculated. The instructor then takes one letter grade from the highest scoring students and gives this to the lowest scoring students. This is the grade the instructor submits on the grade sheet to the college registration office. Which economic system is most comparable to the grading system described above?
Capitalism
Communism
Socialism
Feudalism
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Economics: Principles & Policy
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