Q U ESTIO N 2 10 points Save Answer According to legend, Santa Claus decides what children receive (toys or coal) based on mass surveillance technology (\"he knows if you've been bad or good\"). Since the North Pole elves take orders directly from Santa, the North Pole is a prime example of a (traditionallcentraIly-planned/market) economy By contrast, the First Welfare Theorem of economics implies that the "invisible hand" of the realworld v (trad itionaIlcentralIyplannedlmarket) economy matches the (highest/lowest) cost toy sellers with the (highest/lowest) value toy buyers. As a result, the same number of toys are delivered to children around the world (accounting for their own individual ) "as if" Santa Claus actually made and delivered them Q U ESTIO N 3 10 points Save Answer Slovenia and Montenegro can produce apples and glow sticks as shown below Apples Glow sticks Slovenia |92 |16 Montenegrol 60 I 15 From this table, we can say that v has an absolute advantage in glow sticks, and v has a comparative advantage in apples QUESTION 4 Suppose that wooden desks are a normal QM- Which of the following could shi the Demand for wooden desks? Check all that apply [3 Technology decreases [3 Price of wood increases [3 Income decreases [3 Metal desks become more popular QUESTION 5 As a result of several movies such as Blood Diamond (2006), international demand for diamonds fell. At the same time, Botswana (3 legal and conictfree diamond exporter) increased production of diamonds. As a result of these shocks. the equilibrium price and the equilibrium quantity QUESTION 6 Insurance companies (Liberty Mutual, Geico, etc.) are always encouraging customers to "switch" to them because different insurance contracts are . Therefore, if Geico becomes more expensive, the demand for Liberty Mutual contracts will 10 points 10 points 10 points Save Answer Save Answer Save