1. Suppose you choose to pledge for your top choice of sorority or fraternity at your university. Despite the tiny odds of getting accepted into your top choice, that does not deter you from spending all of rush week focusing on your top choice. Would this strategy coincide with a best-response strategy in a Nash equilibrium?

2. Suppose two competing stores each announce a low price guarantee, meaning that each store would match the prices of the other store if they were lower. Does providing this guarantee make it easier or more difficult to overcome the Prisoners Dilemma facing the two firms?

3. Why do college professors who usually spend five to seven years in graduate school and play such an important role in shaping our society make so much less than a Hollywood producer such as Jerry Bruckheimer, who most people dont even know (he has produced over 40 films and a dozen TV shows)?

4. Has globalization made it more difficult for unions to negotiate higher wages? Why or why not?

5. Why do we permit price discrimination with different ticket prices at movies based on age, or ladies nights at bars (when women get in free or pay less for drinks), or insurance coverage, for which women sometimes pay more (health) or less (automobile), but we do not permit discrimination in wage rates?

6. The rise of terrorist attacks around the world has intensified the debate on immigration, with some legislators eager to pass laws making it harder for foreign citizens to work or study in this country. Many of these would-be immigrants are high-skilled workers who have studied math, science, and technology, subjects that contribute significantly to economic growth and higher wages for all citizens. Using the tools of labor supply and demand, evaluate the effects of a tighter immigration policy on the labor market and on the overall economy.

7. A commonly cited statistic from the U.S. Bureau of Labor Statistics is that women earn between77% and 82% of what men earn for full-time work, which subsequently leads some to conclude that gender discrimination is the cause of this wage gap. However, most economists acknowledge thatnot all of this wage gap can be attributed to gender discrimination. Some studies have estimated that over half of the wage gap is explained by occupational choices, experience levels, and the amount of leave time taken. Briefly discuss how these three factors might cause women to earn less than men.