Answer to Question 1
The wages that are paid to celebrities and teachers will depend on each person's ability to produce labor of economic value. Compared to say, teachers, celebrities like Kim Kardashian add a great deal more economic value to the firms that hire them. The fact that the ad revenue and other earnings that they generate are so high could explain their relatively higher wages. Keep in mind that even though teachers are likely to be more important to society than a celebrity, there are far more teachers than celebrities, who are in extremely limited supply. At the margin, the last teacher hired adds less to output than does Kim Kardashian, as measured by her contribution to total revenue.
Answer to Question 2
B
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