1. Evaluate the following taxes from the standpoint of vertical and horizontal equity: (a) A 25-cent per-gallon tax on milk (b) A tax on stock market transactions (c) A sales tax on men's clothing (d) A tax on cigarettes 2. If college sports are a public good, what can you say about the amount of it a university will supply? What can the university's administration do to resolve this problem?

3. The market for hotels in Sacramento is described by the following equations: Qd=80P and Qs=2P100 (a) What is the equilibrium price and quantity? (b) Suppose the city places a $2 tax on hotel rooms. How much do consumers now pay? How much do producers receive? How much tax revenue is raised by the tax? (c) Based on your answer to part (b) is supply or demand more elastic?

4. Use the all-or-nothing demand curve to explain why the IOC is unlikely to accept a bid by Los Angeles to host only the track and field events in its bid for the 2024 Summer Olympics.

5. The production of beer in a perfectly competitive market is characterized by the inverse supply curve (marginal cost curve) P = 4Q, where Q is measured in millions of cans of beer per month. The inverse demand for beer is P = 10 - 6Q. (a) Solve for the market equilibrium price and quantity. (b) If the production of beer causes an external marginal cost of 50 cents per can, what are the socially optimal price and quantity of toilet paper? (c) To achieve the socially optimal output level, what size tax should the government implement? 6. Use a labor supply and labor demand graph to show why salaries in the NBA went down during the Great Recession. Explain why the curves moved the way they did. 7. Suppose that the market demand for baseball players is perfectly inelastic (vertical) at 750 players. If the market supply increases due to an increase in the number of available international players, show using a graph how wages will change as a result. 8. Why do many economists believe that free agency has not affected competitive balance? 9. How does the economic impact of holding the Super Bowl in Minneapolis, Minnesota - the site of Super Bowl LII - compare with holding it in Miami or New Orleans at the same time? 10. Use human capital theory to explain why graduation rates for women's basketball players are so much higher than those of men's basketball players.