Suppose points are taken away from all students who earn As and redistributed to those students who earn Fs

Economics Dec 23, 2020

Suppose points are taken away from all students who earn As and redistributed to those students who earn Fs. As a result, the A students end up with Bs and the F students get Ds. How would this redistribution affect the incentives of students to study and learn?

Expert Solution

By redistributing point from those who have higher scores to those with lower scores, you decrease the incentive to study. This is because the return on investment where investment here is time spent studying has decreased and thus you will decrease your investment as a result. This doesn't just apply to those who usually get A's. Everyone including those who go F's before have a decreased incentive to study since your actions are know less tied to your grade.

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