1. Classify each of the following goods as private, public, club, or common.
a.iPhone games
b.Waffles
c.Street lamps
d.Public beaches
e.Space in an office refrigerator
2. Jim is a janitor working for a cleaning company which receives $500 from each company that hires them for keeping the company's employee restrooms clean for a period of one month. Jim is paid $2 for each bathroom he cleans and pays for his own supplies and transportation, but is reimbursed $1.10 for every $1 he spends on transportation to and from each company and $1.15 for every $1 he spends on purchasing cleaning supplies.
a. Describe a situation in which this payment structure incentivizes Jim to behave in ways the company would not find desirable.
b. Based on your above answer, how could the cleaning company either change their payment scheme or introduce some company policy to incentivize Jim to behave in a way that is more profitable for the cleaning company?
3. Recall that a good signal of quality is costly to obtain in terms of time or some other resource
(otherwise everyone would send it, and if everyone sends it then it doesn't mean anything).
a. Other than obtaining a degree, what else could you do in college to signal to a future employer that you are, in some way, a good employee?
b. In what way does that signal reveal to the employer that you're a good worker?
c. What prevents workers who aren't good workers from sending the signal you've described?
d. According to your reasons in parts b and c, if you do not do the thing you described in a, are you sending a signal to a future employer that you would be a worse employee than someone who did?