If You're So Smart... The Rich Nations Mystery Which "Wood" You Choose? Intro Intro Intro Part 1 Part 1 Part 1 Part 2 Part 2 Part 2 Part 3 Part 3

If You're So Smart-Part 3

In addition to supply and demand, there is the matter of productivity. When employers have a choice, they would like to hire the person who is going to create the most value, the person who can produce the most in a given period.

Employers can't afford to pay a person more than the income they can generate from the work that person does. What does that mean? See if you can figure it out as you help Brandy.

Should Brandy listen to her head or to her heart?

Brandy lives in a college town. She hears that a lot of students want to have papers typed. She decides to start a business typing papers, even though she doesn't know how to type. She's an entrepreneur and she has a computer and a printer. She does a market survey and finds that students are willing to pay no more than \$2 per page. She looks for typists. How will she decide which typist to hire?

Brandy interviews 4 applicants, and gives each a timed typing test.

• Typist A (her boyfriend) can type 2 pages per hour and want to be paid \$5 per hour
• Typist B (her sister) can type 3 pages per hour and wants to be paid \$5.50 per hour
• Typist C (her cousin) can type 4 pages per hour and wants to be paid \$5.75 per hour
• Typist D (her neighbor) can type 5 pages per hour and wants to be paid \$6 per hour

Can you help Brandy decide whom to hire?

1. How much money can she bring in per hour if she hires her boyfriend?

2. How much money can she make per hour if she hires her sister?

Her cousin?

Her neighbor?

3. Would it be worth Brandy's boyfriend's time to practice his typing to improve his skills and thus his productivity?

4. If he paid \$50 to take a typing class, and gave up 20 hours working at \$5 per hour to improve his typing so that he could earn \$6 per hour, how many hours would he have to work before he recovered his investment?

5. Would he be taking a risk to make this investment? Explain.

6. If Brandy is going to pay her typists \$6 per hour, what is the minimum number of pages they must type per hour?

Not even your teacher can predict the future.

You owe it to yourself to get as much information as you can.

Expose yourself to information about the economy and careers.

The odds of being on this list and earning a high income are a lot better than those of becoming a pro ball player…

Remember, change is the one thing you can count on. No one is wearing leisure suits (http://flashnews.com/news/9sys4sp4.htm: "Leisure Suit Inventor Unravels Reading Disorder") anymore. Keep your eyes open.

No one can do this for you.