TRAINING SCENARIO Learn how to do a Rating Task

In this training scenario, you'll get to practice how to do a rating task, and it won't be graded.

After this, the exam will begin and you'll only get one chance per question.

Plan weekend Gateaway

Response A Ratings:

 Accuracy/Factual: Good (5)

 Completeness: Good (5)
 Conciseness: Good (5)
 Relevance: Good (5)
 Depth: Good (4)
 Formatting: Good (5)
 Spelling: Good (5)
 Overall Ranking: Good (4.9)

Response B Ratings:

 Accuracy/Factual: Good (5)

 Completeness: Minimum (2)
 Conciseness: Good (5)
 Relevance: Good (4)
 Depth: Good (4)
 Formatting: Good (5)
 Spelling: Good (5)
 Overall Ranking: Good (4.3)

Which Response is Better?

 Both responses are the same (4/7)

Response A is better because it follows all the instructions of the prompt. Both responses are good,
and while Response B mentions outdoor adventures, and team building activities for the weekend
getaway, it doesn't delve into the accommodations for the trip. -Completeness: Response B doesn't
complete all the asks of the prompt, by not providing more information about where people will stay.
"there are cozy accommodations nearby, be it campgrounds or comfier lodgings." Instead of a
general suggestion, Response A states "YMCA of the Rockies" and describes its amenities, which
will be more helpful for those planning the trip. Though both responses gave interesting and
insightful ideas for the weekend getaway, Response A takes the edge by giving more specific
information around accommodation.
 Rating: Q1
A country introduced a new policy to promote renewable energy in select provinces but not others. This
policy subsidizes energy production from cleaner sources in these provinces and aims to 1) reduce
pollution in these regions and 2) reduce the prices people pay for electricity in these areas. Explain how
a Difference-in-Differences (DiD) approach could be used to gauge the causal effect of this policy on
both outcomes of interest of the government. Highlight the key assumptions underlying the DiD
approach in this case.

Response A:

1. Factuality/Accuracy: 5
2. Formatting and Coherence: 5
3. Completeness: 5
4. Creativity and Complexity: 5
5. Relevance: 5
6. Development of Ideas/Themes: 5
7. Conciseness: 5
8. Overall Ranking: 5

Response B:

1. Factuality/Accuracy: 5
2. Formatting and Coherence: 5
3. Completeness: 4
4. Creativity and Complexity: 4
5. Relevance: 5
6. Development of Ideas/Themes: 4
7. Conciseness: 5
8. Overall Ranking: 4.5

Which Response is Better: Response A is slightly better.

Final Justification:

Both responses effectively explain the Differences-in-Differences approach,

but Response A is superior due to its additional depth, illustrative example,
 and more detailed explanation. It offers a comprehensive and nuanced
understanding of the DiD method in the context of the policy scenario, which
makes it slightly more informative and useful.

Rating: Q2
Market failures arise when markets fail to allocate resources efficiently. Taking a real-world example of
negative externalities from pollution different from greenhouse emissions, explain the inefficiencies
introduced. Describe a behavioral economics innovation that could be applied to this example to reduce
allocation inefficiencies in this specific case.

Response A:

1. Creativity and Complexity: 4

2. Completeness: 5
3. Factuality/Accuracy: 4
4. Relevance: 5
5. Development of Ideas/Themes: 4
6. Conciseness: 4
7. Formatting and Coherence: 4
8. Overall Ranking: 4.3

Response B:

1. Creativity and Complexity: 4

2. Completeness: 4
3. Factuality/Accuracy: 4
4. Relevance: 4
5. Development of Ideas/Themes: 4
6. Conciseness: 4
7. Formatting and Coherence: 4
8. Overall Ranking: 4

Which Response is Better: Both responses are the same.

Final Justification:
 Both responses A and B effectively address the prompt, offering creative and complex
ideas about behavioral economics innovations to reduce allocation inefficiencies caused
by negative externalities from pollution. They both cover the topic comprehensively,
present accurate and relevant information, develop ideas and themes well, and maintain
a good level of conciseness and coherence. Therefore, they are rated similarly, indicating
an equal level of quality and effectiveness in responding to the prompt.

Rating: Q3
Based on the Spence model of job market signaling, besides aiming to learn skills through their
educational process, individuals choose certain levels of education to indicate to potential employers
about their higher skills. Considering students’ educational choices in the United States, what aspect of
the model seems appropriate, and which ones seem contradictory to the choices students face?

Response A:

1. Completeness: 5
2. Relevance: 5
3. Creativity and Complexity: 4
4. Development of Ideas/Themes: 4
5. Formatting and Coherence: 4
6. Conciseness: 4
7. Factuality/Accuracy: 5
8. Overall Ranking: 4.4

Response B:

1. Completeness: 4
2. Relevance: 4
3. Creativity and Complexity: 3
4. Development of Ideas/Themes: 3
5. Formatting and Coherence: 4
6. Conciseness: 4
7. Factuality/Accuracy: 4
8. Overall Ranking: 3.7

Which Response is Better: Response A is slightly better.

 Final Justification:

Response A offers a more complete and nuanced discussion of the Spence model of job market
signaling in the context of the U.S. education system. It provides a detailed analysis of the
model's applicability and contradictions, demonstrating a high degree of relevance and
accuracy. The development of ideas and themes is coherent and well-structured, though
slightly less concise than ideal. Response B, while also accurate and relevant, lacks the same
level of detail and complexity, and its development of ideas is not as thorough. Therefore,
Response A is rated slightly higher.

Writing: Q1

In a duopoly, where only two firms dominate a market, the dynamics of

pricing and production differ significantly from a market under perfect
competition. In a perfect competition scenario, numerous firms are present,
leading to a higher total supply in the market and typically lower prices, as
firms cannot significantly influence the market price and are essentially price
takers.

In a duopoly, however, the quantity produced is generally lower, and the price
charged is higher compared to a perfectly competitive market. The reasoning
behind this is twofold:

1. Market Power: With only two firms, each has significant market power. This
power allows them to influence the market price, unlike in perfect competition
where the sheer number of firms dilutes individual influence.
2. Strategic Interaction: Duopolies are characterized by strategic interactions.
Each firm's decision on production and pricing takes into account the
potential response of the competitor, often leading to outcomes like reduced
production to maintain higher prices and profit margins.

However, certain conditions can make a duopoly’s outcome more closely

resemble perfect competition:

1. Bertrand Competition: If the duopolists engage in intense price competition

(Bertrand Competition), they might end up driving prices down, potentially
 even to the level of perfect competition. This occurs when each firm undercuts
the other’s price to gain market share, leading to a price close to marginal
cost, as in perfect competition.
2. Product Homogeneity: If the products offered by the two firms are very
similar or homogeneous, and consumers have no significant preference
between them, this can lead to more aggressive price competition, similar to
perfect competition.
3. High Market Contestability: If the market is highly contestable with low
barriers to entry, the threat of potential entrants can induce the duopolists to
set prices and produce quantities similar to what would be expected in a
perfectly competitive market. This is because the duopolists would be trying to
prevent new entrants from finding the market attractive.
4. Lack of Collusion: If the firms in the duopoly act independently and avoid
collusion (cooperative strategies to set prices or production levels),
competition between them might drive the price and quantity towards the
levels seen in perfect competition.

In summary, while a duopoly typically results in lower production and higher

prices compared to perfect competition, under conditions of intense price
competition, product homogeneity, high market contestability, and
independent operations, the outcome can mimic that of a perfectly
competitive market.
Q2
As important trade policy instruments, tariffs are taxes collected from imported goods. Their far-
reaching impacts on the economy make them a topic of great controversy among policymakers,
economists, and scholars. Tariffs have multifaceted impacts on the following:

Consumer Prices:
This contradicts the provided information because tariffs tend to push ultimately consumer prices up.
When tariffs are put into effect by governments, they might cause the price of imported commodities to
go up and these extra prices are normally being transferred to customers. Such practice leads to high
levels of retail prices for imported products and those manufactured from materials produced by
importation. For instance, when a country imposes taxes on steel imported into the country, it not only
increases the cost that affects the direct consumer of this product but also increases for toys made by
cars and appliances in turn its cost for an end consumer.

Domestic Industries:
Tariffs are applied to products from foreign countries to these collaterals will enter the markets for
domestic industries thereby lowering their prices and rendering compete against imported goods. This
intervention can support the development and dominance of selected industries leading to economic
growth through domestic production, and create jobs. However, shielding industries from aggressive
pricing can also promote economic inefficiencies and result in a lack of innovations because they face a
less competitive environment. Additionally, industries that rely heavily on imported goods will see an
increase in the cost of production; this means that they may become less competitive in the local market
and internationally.

International Relationships:
The claim that trade diplomacy strengthens international relations is a fallacy. Tariffs are mostly viewed
as stressors in diplomatic relations which unless revoked leave the two nations no choice but to take
retaliatory measures hence engaging countries into trade wars. However, insecurity resulting from such
violence destabilizes international trade; retards economic growth, and compromises global harmony.
For example, the U.S.-China Trade War caused higher tariffs on billions of goods from both countries’
economies in total has a damaging effect on global supply chains causing economic disruption across
many nations. These tensions show how tariffs could be destructive, hence not useful for international
relations as recently many countries are taking up elimination of tariff barriers.

To conclude, foreign tariff policy is a case of double-edged sword. If they protect local industries and
jobs, their economic externalities extend to increased prices for citizens’ consumption as well as
potential future problems in the international field. In the meantime, the policymakers need to take care
of these complexities through a sophisticated understanding that would play both compensations
towards economic stability and robberies in trade across borders and diplomatic estrangements.
Deciding about imposing tariffs should be done after thoroughly analyzing consequences since not
immediately to economic sectors also they can impact and alter international diplomacy, so achieving
more gratifying results in the long-run might sound enticing without a threat of ruin global trade
dynamics and relationships.

Pop Quiz
How to Improve the Onboarding and Screening Experience/

Answer
The platform can improve the onboarding and screening experience by implementing an intuitive
and user-friendly platform design, simplifying navigation for new users. Incorporating detailed
tutorials and interactive guides can facilitate a smooth onboarding process, ensuring users
understand the platform’s functionalities efficiently. Additionally, implementing robust
screening mechanisms and assessments will efficiently evaluate the skills of individuals,
ensuring a high-quality and proficient workforce for the platform.

Option
The platform can enhance the onboarding and screening experience by creating an intuitive and
user-friendly platform design that makes navigating easier for new users. Incorporating detailed
lessons and interactive guidance can help users learn the platform's functions more easily.
Furthermore, establishing rigorous screening procedures and evaluations will efficiently evaluate
individuals' skills, resulting in a high-quality and proficient workforce for the platform.

Do you have any feedback you want to share about this screening?

The platform offers clear and direct instructions that are very useful for the screening process.
Audible and short videos have been provided offering guidance to partake rating, writing, and re-
writing process. To improve the onboarding and screening experience, implementing an intuitive
and user-friendly platform design and simplifying navigation for new users is recommended.
Incorporating detailed tutorials and interactive guides can facilitate a smooth onboarding process,
ensuring users understand the platform’s functionalities efficiently. Additionally, implementing
robust screening mechanisms and assessments will efficiently evaluate the skills of individuals,
ensuring a high-quality and proficient workforce for the platform.

Option

The platform provides clear and precise directions, which are valuable during the screening process.
Audible and short films have been supplied to guide participants through the rating, writing, and
rewriting process. To improve the onboarding and screening experience, a simple and user-friendly
platform design, as well as simplified navigation for new users, is recommended. Incorporating detailed
lessons and interactive guidance can help users learn the platform's functions more easily. Furthermore,
establishing rigorous screening procedures and evaluations will efficiently evaluate individuals' skills,
resulting in a high-quality and proficient workforce for the platform.