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1. In the words of Wilbur Thomson, "we treat the scarcest resource in cities as if it were a free good." In the near future, New York City willjoin London, Singapore and other cities in imposing a congestion toll on automobiles using city streets in Manhattan below 60th Street. Explain the economics behind this policy. 2. Producers in cities generate external economies for each other. This occurs for several reasons. They generate a pool of appropriately skilled labor each can draw upon. This makes matching worker to the needs of specific firms easier. They generate economies of scale in specialized subcontractors needed for innovation as well as managing international business networks. So businesses, even competing businesses, shore subcontractors, consultants and the like. Finally the interplay of producers in close proximity to one another enhances both organizational learning and innovation. a. Explain how producer sharing generates agglomeration economies and advantages to urban locations. b. Explain how matching generates agglomeration economies and advantages to urban locations c. Explain how learning generates agglomeration economies and advantages to urban locations 3. How does segregation interfere with sharing, matching and learning, thereby slowing urban growth? 4. Apply the notions of sharing, matching and learning to a highly segregated neighborhood economy, for examples, an immigrant community [Little Caribbean, Little Haiti, Chinatown, etc.) or African-American or Hispanic-American communities. 5. How is it possible for ground rent to be higher in low-income neighborhood than in middle-income neighborhoods