1.22 After you have studied Economics in the News on pp. 454–455, answer the following questions:

a What information do accurate grades provide that grade inflation hides?

b If grade inflation became widespread in secondary schools and universities, what new arrangements do you predict would emerge to provide better information about student ability?

c Do you think grade inflation is in anyone’s self-interest?

Explain who benefits and how they benefit from grade inflation.

d How do you think grade inflation might be controlled?