- Explain why the general level of wages is high in the United States and other industrially advanced countries. What is the single most important factor underlying the long‐run increase in average real‐wage rates in the United States? (40% of grade)
- Do you think exceptionally high pay to CEOs is economically justified? Why or why not? (20% of grade)
- Here is the deal: You can pay your college tuition at the beginning of the academic year or the same amount at the end of the academic year. You either already have the money in an interest-bearing account or will have to borrow it. Deal or no deal? Explain your financial reasoning. Relate your answer to the time-value of money, present value, and future value. (40% of grade)