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1. Which of the following about city size is INCORRECT: (a) At a stable equilibrium, cities may not always be at the optimal size (b)

1. Which of the following about city size is INCORRECT:

(a) At a stable equilibrium, cities may not always be at the optimal size (b) It is possible for many cities to be simultaneously too small if there are migration costs

(c) At a stable equilibrium, cities will always be too large

(d) None of the above

2. The Rosen-Roback model predicts that

(a) Workers in all cities have the same wage (b) A worker will be indifferent in living in any city

(c) Workers in all cities have the same real wage (d) Cities with high wage and high amenity must have low housing price.

Please provide an explanation, if possible, for understanding. Thank you.

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