1. Figure 1 below. Consider the graph a representation of welfare distribution in an economy with only two people, both of them impacted by the school bus project.According to the Pareto efficiency principle, which segment or point on the graph below corresponds to an efficient allocation of resources as a result of the school bus policy?
2. Figure 2 below. If the government decides to provide price supports to soybean farmers (target pricing) what's the change in consumer surplus (CS) in this market?
3. Figure 2 above. If the government decides to provide price supports to soybean farmers what's the change in producer surplus (PS) in this market?
4. If the government decides to provide price supports to soybean farmers what is the government surplus in this market?
5. If the government decides to provide price supports to soybean farmers (target pricing) what is the deadweight loss (DWL) in this market?

If the government decides to TAX the soybea