From 1970 to 2005, average U.S. family income rose 20%, however, during the same period, CEO income increased 2,800%.  Do American CEOs work that much harder than the average American?  Explain.

Weber coined the term Protestant Work Ethic and defined proper workplace behavior as working for more than the benefit of oneself; or working just for profit. A characteristic of the protestant work ethic is wealth creation based on increased productivity and better use of resources. Do you think there are generational differences between why baby-boomers work and today’s millennial's (Gen-Y)? Discuss your perceptions.

Consider the following model of labour supply. There is a representative worker with the following utility function: U(C,L) = CªL²-a where U is utility, C is consumption, L is leisure, and a is a parameter that governs the importance of consumption to the worker's utility relative to leisure. a must satisfy 0 < a < 1. Consumption and Leisure are always positive (by definition) The budget constraint and time constraint are: C = wh + V h = T – L where w is hourly wage, and V is non-labour income, T is time endowment. Here, w,V and T are parameters. h is hours work a) Does the utility function exhibit the "the more the better" and "law of diminishing marginal utility" assumptions? Show it. b) Characterize the optimal leisure and consumption as functions of the parameters a, w, V and T

Suppose that education is the only factor that affects productivity and that an additional year of education raises wages by 2%.   Suppose in 2011 gender wage gap was 13%, and the average man had 15 years of education while the average women had 14 years of schooling.  a) Using the wage gap decomposition technique, calculate how much of the 13% wage differential is due to discrimination? b) Now suppose in 2021 the gender wage gap is 10%, but the average woman’s education level is increased to 17 year and the average man’s education increases to16 years. (Assume that the return to education stays same at 2%), Was there a decrease or an increase in wage discrimination in the decade?  Why?