1- Define the following concepts: a) Technology (5p) b) the principle of diminishing marginal product (5p) c) opportunity cost (5p) d) the principle of diminishing marginal benefit (5p) 2- Why does a firm supply curve have a positive slope? Explain. (10p) 3- Why does a consumer demand curve have a negative slope? Explain. (10p) 4- How does an increase in the world price of oil affect the supply curve of the industries that use oil as an input? Explain and use a supply diagram to show your answer. (10p) 5- How does an increase in the world price of oil affect the supply curve of oil producers in Texas? Explain and use a supply diagram to show your answer. (10p) 6- How does adopting a new technology affect producers' total revenue and cost? Your answer should be based on graphical analysis. Compare producer surplus and revenue before and after technological innovation graphically. To simplify things, assume the output price is lower after technological innovation. (20 p) 7- What is the price elasticity of demand, and why is it important in policy analysis? Explain. (10p) 8- Using two demand diagrams, show that the slope and elasticity of demand are inversely related, i.e., as the slope increases, the elasticity decreases. (10p)