1. A. Karl Marx (as well as others who believe in socialism) believes that capitalism (the free enterprise economy) inherently cheats (underpays) each and every employee. What is the mechanism of capitalism that always causes the worker to be underpaid?

B. Karl Marx believed that economic development increases the amount in which the worker is underpaid. By applying the five stages of economic development, by what mechanisms does economic development cheat all employees by even more?

C. Milton Friedman's Capitalism and Freedom is partly written as a response to Karl Marx's writings. Friedman believes that capitalism does not cheat the employee. What reasoning leads Friedman to his conclusion, opposite to Karl Marx's beliefs?