What was the reason for this prompt?
Let us recall a distinction we've made in class previously between
(a) information that is verifiable (by a third party),
(b) information that is observable (by the parties in contract) but not verifiable, and
(c) information that is not observable (meaning one party has the information but the other does not).
Which of these is most relevant to what we will be studying in the next few weeks?
The life-cycle model of consumption. This graph is useful to keep in mind when considering income risk.
What causes income to rise during one's working life?
Economics answer - It is a return to human capital.
Normal person's answer - it's what happens when you get promoted. So the rising portion of the curve is associated with climbing a job ladder.
What might block moving up to the next rung on the ladder?
The Peter Principle - People rise in an organization till they reach their own level of incompetence.
Are there things you can do now or things you've already done that can shape how you'll performa after being promoted a couple of time?
Non-proximate causes - The Fifth Discipline
Life lessons - School of Hard Knocks (Experience)
Are there prior experiences you have had that will shape your performance as you climb the job ladder but are not anywhere on your resume or on your transcript?
Can you identify any such experiences?
A big deal issue with your generation as perceived by mine:
A blog post written by me called Slapball, written before The Overprotected Kid came out, which is partly nostalgia for childhood and is partly a description of how kids played when they didn't have adult supervision during the time I was growing up.