E. Given that this will be a "take-home" essayr style exam, I like to draw your attention that collaborating with fellow students regarding the answers will not be tolerated and constitutes academic dishonesty which will be pursued. PART A t] \"ft: !: PART A requires the student to provide a denition and brief explanation in essay form of the importance of the following concepts for the understanding of micro- economics ] More is better characteristic; 2} Market Distortion and its potential long-term effect; 3} Parallel shift of the Supply Curve and what such a shift indicates; 4} Market lClearing Price and Market Adjustment. PART B !34 'ila !: PART B features an economic statement; you are asked to determine whether the following economic statement is true or false; and then provide a thorough explanation for your decision: \"The value of the income elasticity of demand for automobiles indicates how effective a cut in personal income tax will be for the car industry.\" PART C [36 'il: [: PART C features an essay-type question with three subparts and requires the student to provide a thorough discussion of the issues asked. Very often nowadays governments see the need to intervene in a market. A very high profile example of government intervention is the carbon tax proposed by the Canadian federal government that began in mm. Based on your understanding of the concept of market intervention by governments and the economic effects of a tax like a carbon tax which is a specic tax, thoroughly discuss: L its market distortionary effects on the gasoline retail market; 2. who will bear the burden of such a tax, taking into account the price elasticity of demand for retail gasoline in the short-term; and 3. how could the government mitigate the impact of the Deadwcight Loss {D.W.L.} on the country's GDP? NOTE: You are expected to use correctly drawn and complete graphs in your answer. THE EN D E. Given that this will be a \"take-home\" essay style exam, I like to draw your attention that collaborating with fellow students regarding the answers will not be tolerated and constitutes academic dishonesty which will be pursued. PART A 130 "t: PART A requires the student to provide a denition and brief explanation in essay form of the importance of the following concepts for the understanding of micror economics 1] Slope of lsoquant less than PUPK; 2 ) PCC; 3] Engel Curve and Inferior Good; 4] Increasing Returns to Scale. PART B [34 "deli PART B features an economic statement; you are asked to determine whether the following economic statement is true or false, and then provide a thorough explanation for your decision: \"Rising Average Product of Labour always requires Rising Marginal Product of Labour, cereris paribur.\" Ed B | 1 g "(all PART C features an essay-type question with three subparts and requires the student to provide a thorough discussion of the issues asked. Economists assume that by pursuing a strategy of cost minimization of production, most rms try to achieve profit maximization. Based on your understanding, thoroughly discuss: l. The concept of expansion path; 2. Minimization of cost of production through technological changexererrls purines; and 3. Minimization of cost of production by pursuing a long run expansion path strategy, instead of a short run path strategy, cereris purines. NOTE: You are expected to use correctly drawn and complete graphs in your answer. THE END