1 Say that the citizens of Tucson, Arizona, vote to increase the minimum wage within the city to $10 per hour above the prevailing federal minimum wage of $7.25. Explain how one would use positive and normative analysis to evaluate the desirability of this proposed policy.

2 What economic forces might explain why the relative price of telephone services fell while the relative price of medical care increased between 1983 and 2013?

3 Explain why it is important to look at a good's real price as opposed to its nominal, or absolute, price.