Multiple choice question 1: (6 marks} Consider the market for Designer masks. The demand curve in the UK is given by Q=50-2p and the supply curve is given by =3p. Which of the following statements is true for this market? a] The perfect competition equilibrium price is 10. b] The perfect competition equilibrium price is 16. c} The perfect competition equilibrium quantity is 30. d] If there was a rst-degree discriminating monopolist with the same supply, it would never charge anyone a price higher than 20. e] If there was a rst-degree discriminating monopolist with the same supply, the quantity itwould produce would be higher than in the case of perfect competition. f] If there was a rst-degree discriminating monopolist with the same supply, its\" prots would be higher than the sum of all profits of rms in the case of perfect competition. Multiple choice question 2: [6 marks} Which of the following statements are true? a] An example of moral hazard in insurance markets is that drivers who buy collision insurance happen to be more cautious drivers than those who do not buy collision insurance. b] An example of moral hazard in health insurance markets is when patients with medical insurance might do less to lead a healthy life, so for example they will smoke more. c} An example of moral hazard in the university markets is that salaries are so low that only low quality lecturers apply to a university job. d] Moral hazard does not exist in partnerships because when the partners share the profits this motivates them to work at an efcient level- e] Moral hazard in partnerships implies that workers exert inefcient levels of effort. Multiple choice question 3: (6 marks} The government considers taxing the market for vapes with a per-unit tax. Assume that this market has an upward sloping supply curve. Assume that vaping is addictive so that the demand curve is fullyr inelastic. The tax division prepared the following statements for the Prime ministerto consider, which of them are true? a] No matter if you tax the consumers or the producers, consumers and producers will each bear half of the tax burden. b] If the tax is on consumers, the quantity of vapes sold in the market will surely go down. c} If the tax is on producers1 the quantity sold in the market will not change. d] If the government objective is to curb use of vapes, then the tax will not be effective in this market. e] If the government objective is to raise revenue. then the tax will be equally effective irrespective of the slope of the supply curve