4-Over the past few months, during the Pandemic, several governments have announced lockdowns, where businesses are shut down and people are asked to remain at home. What are some Marginal Benefits of lockdowns and Marginal Costs of lockdowns? Using Marginal Analysis, how can government justify the use of lockdowns? Explain...

5-Which of the following topics relate to Microeconomics or Macroeconomics? Please explain...

A-An increase in the minimum wage (all else equal) reduces the demand for workers in several fields

B-An increase in the price of graphite raises the price of tennis racquets

C-Lower interest rates increase the demand for goods and services which raises Gross Domestic Product (GDP)

D-The effect of an increase in public transit prices on the demand for public transit rides

6-Consider the following economic model of New Home Sales in the Greater Toronto area:

New Home Sales (H) = { Location (L), Price of New Homes (P), Mortgage rates (r), Population (POP), Income (Y), Advertising (A) }

A-Briefly outline the Independent and Dependent variables in this model

B-Use the above model to state one theory that shows a positive relationship and one that shows an inverse relationship. Explain any assumptions that are made.

C-Using the above model, an economist proposes the following theory:

"As income increases, new home sales will increase as well"

Briefly explain why the "Ceteris Paribus" Assumption is important in such a theory...