5. (half page) Use general equilibrium analysis to explain why barbers earn  higher real wages now than in 1900, even though there has been little technological progress in this industry.
As workers on the market tend to be remunerated their discounted marginal productivity, an increase in the productivity of most sectors since 1900 led to a rise in wages. Barbers compete with other sectors for labor. Hence, even though there is little technological progress in this industry, barbers still have to pay a higher wage.
Let us also notice that higher wages despite the absence of productivity gains in the barber industry do not mean that production by barbers is reduced. Indeed, gains of productivity in other sector will constitute a higher demand in real terms as long as there is no monetary disequilibrium. This is a direct consequence of Walras' Law according which excess supply cannot exceed excess demand. The increased productivity of all industries except the barber industry, by increasing production, will constitute an increased demand for the barbers' services, hence bidding up wages.
6. (half page) Explain how betting markets could be used to resolve a practical  controversy of your choice. Carefully explain the exact bet or bets that would  need to be offered. Would you be willing to bet against the market?