How does grade inflation effect economics?

Question

How does grade inflation effect economics?

Answer 1

A top grade (e.g., an "A" in the U.S. or a "1" in Germany), used to signal to prospective employers that they are dealing with one of the smartest students. Now a lot of students have a very high grade. It is therefore harder for prospective employers to distinguish between the best students and the ones that are not as good, but also received very good grades.

In other words, as more and more economics students receive the highest grade, the information content of the grade is reduced.