1. A minimum wage is an example of a price floor. Explain, using supply and demand analysis, the effects on the labor market of imposing a minimum wage. Why would a government choose to impose a minimum wage?
2. Assume that orange juice is a normal good. What would happen to the market for orange juice in each of the following cases:
   1. A severe winter affects the orange crop in Florida
   2. An advertising campaign emphasizing the health effects of consuming Vitamin C is launched
   3. The price of grapefruit juice falls
   4. Agricultural workers win a wage increase.
3. Differentiate between command-and-control and market oriented solutions to negative externalities. Provide an example of each employed in pollution control.
4. A firm produces 100 computers. Its total costs are $90,000 of which fixed costs are $20,000. What are its:
   1. Average Fixed Costs
   2. Average Variable Costs
   3. Average Total Costs
   4. When it produces another computer its total costs rise to $90,500. What is the marginal cost of the 101^st computer?
5. What alternatives do firms have when raising capital? What criteria do they use in choosing between them?