Tyler Coughlan, Chapter 2, Question #6

Wheelan's main point in this chapter is that incentives matter. They can lead to economically good or bad outcomes depending on how that incentive is set up. The example that I found interesting was the teachers union were teachers all receive a uniform pay and through this process all the most talented teachers who are most likely just as good at another profession will choose the other profession because they will be payed more. They will do this because "Human beings are complex creatures who are going to do whatever it takes to make themselves as well off as possible." Then also this makes the least talented teachers to have an incentive to continue to teach instead of not. So this set up system gives economically bad incentives.