1) Alphatown is 10 miles from Bravoville. At first, everyone travelling from Alphatown to Bravoville takes the highway. There is a lot of traffic on the highway, so it takes 30 minutes to get there. Then people start using Waze, and Waze finds a non-highway route from Alphatown to Bravoville that only takes 20 minutes. Is this an equilibrium? Note: suppose everyone has easy access to Waze. A) Yes B) No, people will switch from the highway to the Waze-recommended route. Eventually, nobody will ever take the highway, even though the Waze-recommended route now takes longer than the highway because of all the extra traffic C) No, some people will switch from the highway to the Waze-recommended route. Eventually, both routes will take less than 30 minutes D) No, some people will switch from the highway to the Waze recommended route. Eventually, both routes will take more than 30 minutes 2) This is an old economics joke: A hundred-dollar bill is lying on the ground. An economist walks past it. A friend asks: "Didn't you see the money there?" The economist replies: "I thought I sow something, but I must've imagined it. If there had been $100 on the ground, someone would've picked it up. " Which of the following would best explain why the economist doesn't believe that there is a $100 bill on the ground? A) He believes that supply slopes up B) He believes that most situations quickly move toward equilibrium C) He believes that picking up a $100 bill would not be rational behavior D) He believes that the marginal benefit of picking up a $100 bill is negative