There  is frequent confusion about the terms asymmetric information, moral  hazard and adverse selection?  Asymmetric information is the cause,  moral hazard and adverse selection are the outcome.  This video is great  at explaining the connection between asymmetric information and adverse  selection.  https://www.youtube.com/watch?v=sXPXpJ5vMnU  Your job will be to explain what is the adverse selection problem faced by the labor market for police officers. Many  police officer positions require the applicant to have a college degree  even though the tasks of a police officer rarely call upon college  course material. Why don't police departments increase their applicant  pool by dropping this requirement? What problem is faced by each party in  the process of hiring police officers?  As you answer this question  think back to last week and the problem of Type 1 and 2 errors and the  human tendency to be risk-averse.  

In this assignment you will look at the data on women's and men's pay, and explore reasons for the pay differential. Respond to the 3 key questions below. What does the data tell us? 1. Based on information you find in the sites below, compile a list of the five most important statistics that you find regarding pay differentials. Explain why each statistic is important. Go to the U.S. Department of Labor's Women’s Bureau "Women in the Labor Force in 2006" at: http://www.dol.gov/wb/factsheets/Qf-laborforce-06.... For a journalistic summary see "End Sex Discrimination for Good" in The Christian Science Monitor at: http://www.csmonitor.com/2007/0501/p09s02-coop.htm... What are the reasons for the pay differential? 2. Prepare a list of explanations for the pay differential based on this source: http://www.bankrate.com/brm/news/career/20050307a1... 3. Choose the two most plausible explanations from your two lists. Summarize the data in support of these two explanations. Your final product will be a paper that: Addresses each of the four questions above in total. Is APA fortatted. The body is to be 2 pages minimum. The requirements for your assignment are: 1. Answer each question fully 2. Define the overall subject of each question. 3. Cite at least three (3) resources from this week’s materials.