A. The question is this:How would you measure income inequality.

What data do you need to solve this measurement problem? What factors do you need to consider? How would you get the data you need? How would you estimate income inequality? Finally, based on what you have learned in this class, what is the cause of income inequality? What policy would you suggest to make it less? Or is no additional policy needed?

B. This is the official COB rubric for critical thinking. Treat "how do I estimate income inequality" as the problem and develops a strategy to estimate it. Your statements about what is causing inequality and what policy you would use to address it are part of this as well.

Question B2.

I often will quip that the answer to many questions in economics is either transactions costs or price discrimination. Let us say I contend that the biggest threat that inflation presents to the economy is that moderate, persistent inflation will drastically increase transactions costs in the economy. Defend my view. (Alternatively, you can disagree and dismantle my view.) These two conversations will help.

https://www.youtube.com/watch?v=MGT2KFDeuO8

https://www.youtube.com/watch?v=VOdVAlavSrE

Question B5.

Mishkin gives a good explanation of what banks do. (Marginal Revolution does as well. Find those videos under section 4 at the following linkhttps://mru.org/principles-economics-macroeconomics-0) So, what do banks do? (Bank=financial system.) What happens when banks can't do what they do? In your answer, be sure to discuss asymmetric information.

Question B3.

Some of the papers we read this semester explained how global financial markets increased global risk. Is there an alternative story? Might globalization make the world safer in some ways? Explain your view. (Also, you could thinking about under what conditions globalization makes the world safer or more dangerous.)