An Application of Economics to Exams 。The problem After answering the questions you know the answer to,ten minutes are left So you write something on the ones you don't know the answer to This has several costs It wastes your time writing it and mine grading it I might give someone credit for something he really doesn't know because he is good at faking it I might fail to give someone credit for something he does know,because I think he is faking it The Delphic oracle said that Socrates was the wisest man in Athens But Socrates knew he didn't know anything After talking to others in Athens,he conclude that they didn't know anything either ·But thought they did My Solution:20%credit for knowing that you don't know something You get it for leaving a question blank or writing "I don't know"or the equivalent Applies only to a complete question,not a part.Will apply on the final. Consider the incentives An Application of Economics to Exams • The problem • After answering the questions you know the answer to, ten minutes are left • So you write something on the ones you don’t know the answer to • This has several costs • It wastes your time writing it and mine grading it • I might give someone credit for something he really doesn’t know because he is good at faking it • I might fail to give someone credit for something he does know, because I think he is faking it • The Delphic oracle said that Socrates was the wisest man in Athens • But Socrates knew he didn’t know anything • After talking to others in Athens, he conclude that they didn’t know anything either • But thought they did • My Solution: 20% credit for knowing that you don’t know something • You get it for leaving a question blank or writing “I don’t know” or the equivalent • Applies only to a complete question, not a part. Will apply on the final. • Consider the incentives