Pop Quiz Bryan Caplan By Bryan Caplan, Oct 21 2010 SHARE POST: Suppose you get your midterm back, and discover that you’ve scored considerably higher than you expected. According to basic micro, how will you adjust your study effort in response to this pleasant surprise?
Oct 21 2010 Microeconomics Pop Answer Bryan Caplan There's much disagreement in the comments, but I side firmly with everyone who said that the answer is indeterminate because the income and substitution effects work in opposite directions. Your unexpectedly high grade is evidence that you earn more points per hour of effort than expected. Or in other words... 6 Read More
Oct 21 2010 Labor Market California's Proposition 19 David Henderson A commenter on my post yesterday asked me what I thought about California's Proposition 19, which would relax state and local government restrictions on marijuana. I voted for it because I want the government to let people do, in the late Leonard Read's inimitable phrase, "anything that's peaceful." But I did have d... 36 Read More
Oct 21 2010 Microeconomics Pop Quiz Bryan Caplan Suppose you get your midterm back, and discover that you've scored considerably higher than you expected. According to basic micro, how will you adjust your study effort in response to this pleasant surprise? 25 Read More