Microeconomics 13th Edition by Russell Sobel, David Macpherson, Richard Stroup, James Gwartney

Exercise 7

"If Jones has a skill that is highly valued, she will be able to achieve high market earnings. In contrast, Smith may work just as hard or even harder and still earn only a low income."
a. Does hard work necessarily lead to a high income?
b. Why are the incomes of some workers high and others low?
c. Do you think the market system of wage determination is fair? Why or why not?
d. Can you think of a more equitable system? If so, explain why it is more equitable.