Income Inequality:

Part 1:

1) You have been asked by the provincial government to design a policy to reduce poverty. Describe your recommendations, including potential problems and costs. Provide the reasoning behind your recommendations.

Part 2:

2) a) How has globalization affected income inequality? Explain.

b) How has the rise of information technology affected income inequality? Explain.

3)a) What is the "Principal-Agent Problem?" What role does this problem play in determining CEO salaries? Explain.

b) What is "tournament pay?" What role does this type of compensation play in creating inequality? Explain.

4) Summarize the Danish "flexicurity" model

5) What is a "winner-take-all" market and how does it affect inequality.

6) Illustrate and explain how a monopsonist in a particular labour market will affect wages and employment relative to a competitive labour market.

7) How might a traditional welfare scheme reduce a recipient's incentive to work? Explain. Describe a scheme that might rectify this problem. What are its strengths and weaknesses? Explain.

8) Describe the market forces and the non-market forces that have lead to an increase in inequality over the past few decades.

9) What are payday loans? Why do people use payday loans? What impact do payday loans have on poverty? Discuss.