2. This question deals with the Internal Rate of Return (IRR). What question does the IRR answer? If physicians have an IRR of 12%, while lawyers have an IRR of 7%, what does that mean? 3. Page 194, number 4: Physicians earn above-competitive wages, and the best evidence of this is the very high annual incomes that some doctors earn." Comment. 4. Suppose that society consists of three cities (A, B, and C), with populations of 90,000, 55,000, and 5,000 people, respectively. Suppose that this society has a total of 15 doctors. How many doctors will live in each city? If the number of doctors, doubles how many will live in each city? 5. Should there be more or less advertising in the medical sector? Explain the pros and cons of advertising. 6. Suppose an economist and a doctor debate about licensure. What views would the doctor have about the benefits of licensure? What views would an economist have about the costs? 5. Explain why a higher savings rate generates both positive and negative impacts on steady- state consumption per worker in the Solow growth model with population growth and technological change. 6. The initial steady-state level of capital per worker in Macroland is 5. The Golden Rule level of capital per worker in Macroland is 8 a. What must change in Macroland to achieve the Golden Rule steady state? b. Why might the Golden Rule steady state be preferred to the initial steady state? c. Why might some current workers in Macroland prefer the initial steady state to the Golden Rule steady state