Discussion 6- Asymmetric Information Problem Answer

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Describe the problem of asymmetric information that an employer faces in hiring a new employee.  What solutions can you think of?  Does the problem persist after the person has been hired?  If so, how and what can be done about it?  Is the problem more or less severe for employees on a fixed salary?  Why or why not? 

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Grading Rubric 

Some Rubric (1)

Criteria

Ratings

Pts

Professionalism:

Proper grammar, spelling, citations, sources, good organization, readability, clear articulation of ideas, correct use of templates, etc.

10 pts

Exceeding Standard

8 pts

Meeting Standard

5 pts

Below Standard

0 pts

No Marks

10 pts

Thoroughness

Follows instructions; response is well-researched and articulate; appropriate length; addresses all prompts and assignment criteria; thoughtful analysis

10 pts

Exceeding Standard

8 pts

Meeting Standard

5 pts

Below Standard

0 pts

No Marks

10 pts

Progression:

Incorporates feedback and suggestions from instructor and peers; demonstrates continuous improvement

10 pts

Full Marks

8 pts

Meeting Standard

5 pts

Below Standard

0 pts

No Marks

10 pts

Total Points: 30

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When an employer faces the problem of asymmetric information on hiring a new employee, a significant amount of trust is required. An employer is assuming that the employee was

This question is taken from BUSAD 135 – Money and Banking » Spring 2022 » Discussion