For all the below questions, explain thoroughly and show your work. Background readings: chapters 5,6,7 Exercise 1 (30 points) Background readings: Chapter 5,6 1A. (10 points) Discuss Canada's competitive position relative to our largest trading partner, the United States over the years 1989-2017. 1B. (20 points) Discuss overtime restrictions and job creation: theory and evidence. Explain with words only, no graph needed. Exercise 2 (30 points) Background readings: Chapter 7 Pick and give examples of 2 firms: Firm 1: monopsonist Firm 2: perfect competitive firm that hires labour in perfect competitive market For each firm above, expand on and explain its hiring process, wages they pay, employment level. How do they determine the employment level? How each firm behaves when it wants to expand its labour force? Compare and contrast the total wage bills of the above firms. Explain with words + graphs