1. The following graph shows the high-income households' and low-income households' will- ingness to pay for the premium gap to live in the neighborhood, at a given the income com- position. Suppose at the moment there are 75 high-income households in the neighborhood. Which of the following statement is true. (10 pts) Premium (low income) 24 Premium (high income Rent pop (5) 75 High income hunghelds in neighborhood A (a) Because there are more high-income households than low-income households, high- income households outbid low-income household. (b) This is a stable equilibrium. (c) Low-income households will outbid high-income households, in the equilibrium there will be fewer than 75 high-income households. (d) The stable equilibrium is a perfectly integrated neighborhood with equal numbers of high-income households and low-income households. 2. In dealing with traffic congestion, which of the following is NOT an advantage of congestion tax over volume control? [10 pts] a. Time-sensitive travellers will be able to use the highway b. No need for travellers to wait in the queue c. It collects tax revenues d. Travellers with low willingness to pay will be able to use the highway 3. Which one of the following is not how a gasoline tax reduce highway congestion? [10 pts] a. It increases the time needed to get to destination through highway b. It diverts people to cheaper public transit c. It drives people to travel less frequently d. It increases car pooling 4. Which of the following about the "Moving to Opportunity Project" is INCORRECT? (10 pts) (a) Under this policy, many households living in public housing in distress neighborhoods were given housing vouchers to move to other neighborhoods 2 (b) The policy had virtually no effect on the earnings of the adult parents (c) The policy decreased the future earnings of the moving youth in their adulthood (d) Young kids (