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1. Income inequality has increased steadily since 1981. This increase is due to a wide variety...

1. Income inequality has increased steadily since 1981. This increase is due to a wide variety of factors, including public policy decisions, changes in our economy and changes in our social norms. Identify at least three of the major factors and discuss at least one change in public policy that would address that specific area.

2. Komlos has identified various areas where he has finds that our economy comes up short, both absolutely and in comparison, with other modern industrialized democratic nations, both in terms of efficiency and in goals. I have discussed in class how traditional economic beliefs and practices have also failed in providing the economic efficiency that traditional economists like to tout. Identify three problem areas that Komlos have discussed and suggest potential ways of resolving some of the issues.

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