It seems to me that an effective remedy to grade inflation would be
standardized exams on the subjects taught, prior to graduation.  There would
be, for example, a standard exam for econ majors, similar to what is done in
grad schools.  If many universities used the same exams, then that would
serve as a signal of knowledge, and also reveal the grade differential
relative to test results.  That, of course, is why such exams are not being
implemented.

Fred Foldvary

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