1. fiogf49gjkf0d fiogf49gjkf0d Describe the principal features of the U.S. earnings distribution and how it has changed over time. 

2. fiogf49gjkf0d fiogf49gjkf0d Intuitively, what is meant by an increase in earnings inequality? Why might the distribution of earnings provide an inadequate measure of actual inequality? 

3. fiogf49gjkf0d fiogf49gjkf0d What is meant by the cumulative earnings distribution, F(w)? Can you explain why, F(0) = 0, F(∞) = 1, and F(w) increases in w? 

4. fiogf49gjkf0d fiogf49gjkf0d What is meant by the Gini coefficient and why does it measure inequality? 

5. fiogf49gjkf0d fiogf49gjkf0d What are the basic economic principles that underly the superstar phenomenon? 

6. fiogf49gjkf0d fiogf49gjkf0d In the text, it was remarked (perhaps somewhat mysteriously) that the superstar phenomenon can arise in settings in which the seller provides a service that possesses a discrete pass–fail nature. Explain why the market for lawyers (more precisely, for legal representation) can have this basic flavor and why it might lead to the superstar phenomenon. 

7. fiogf49gjkf0d fiogf49gjkf0d Suppose that a given employer initially pays everyone the same salary, w. What do you think would happen if it introduced a piecerate system? 
