1. Which of the following is unlikely to explain the population growth of the \"Sun Belt\" (re- gion of the U.S. stretch across the Southeast and Southwest, including Texas, Florida, Arizona, Alabama, Oklahoma, etc)? (10 pts) a. Low population density relative to major cities in the coasts b. Oil price hike c. The advent of air conditioning d. The long commute time in this region 2. Suppose a manufacturing firm uses two hectares of land to produce 5 units of outputs, each sells for $50. The cost of raw materials required for each unit of output is $15. The labor cost for each unit is $ 20. The cost of transporting each unit of output is $ 2 per mile. The manufacturing firm ships its output to the customers in the city center. What's the willingness to pay for a hectare of land that is 5 miles from the city center? (10 pts) a. $ 12.5 b. $ 10 c. 3: 5.5 d. 1% 37.5 3. If you are an urban policymaker, and you are interested in increasing population in your city but also want to increase wages, which of the following policies would you prefer? (hint: analyze using the Rosen-Roback model) (10 pts) a. Increase the enforcement of local environmental laws, to lower pollution. b. Encouraging the Federal government to locate a new university in your city. c. Reducing public services to residents (parks and festivals, for instance), without reducing their tax bill. d. Raising taxes on rms, without changing service levels to firms. e. Reducing public services to firms [roads and infrastructure, for instance), without chang- ing the taxes firms pay