Question 1 Question 1 (1poing This question has multiple answers: The government has set a price floor on the selling of cigarettes. At the equilibrium, the price is $7 per pack. After the price floor, the cigarettes are to be sold at minimum of $8.5 per pack. Which of the following statements are true? Select 2 correct answer(s) A There is a shortage. The price floor is binding. There is a surplus. Question 2 (1 point) Which of the following must be kept in mind when using economic efficiency? A Willingness to pay reflects marginal benefit as well as ability to pay. B The end is all that matters, processes of getting to the efficiency numbers do not. C Equity is not important, nor are distributional consequences. Question 3 (1 point) Comparative advantage explains why: A some people should do all the work B people try to do a little bit of everything to get a bigger piece of the economic pie there are gains from trade in marketsQuestion 11 Which of the following statements is true in the context of the Rational Rule for Workers? When income effect is dominated by substitution effect, it is better to work one less hour. B When substitution effect dominates, it is better to work one extra hour. When income effect is low, it is better to work one less hour. Question 12 This question has multiple answers: On average, college graduates earn more than high school graduates. This is because: Select 2 correct answer(s) A The higher education signals more human capital. B The higher degree signals higher productivity. Years spent in education can be better used to gain work experience. Question 13 Between the occupation of being an interior designer and a landscape designer, the licensing is more difficult, expensive and time consuming for the landscape designer. Moreover, landscape work can be physically exhausting. As a result, interior designers get higher wages due to compensating differentials. True FalseQuestion 22 The United States has historically imposed import tariffs on tobacco. Let's take a look at how these tariffs impact the market for tobacco. The domestic supply and domestic demand for tobacco are illustrated by the graph below. Answer the following questions based on this diagram, using letters. Domestic supply A PA G H 3 World price C K plus tariff P2 D L M N O World price P1 P Domestic R S T U demand Q1 Q2 Q3 Q4 Qs Quantity of tobacco Answer the following questions below from A to F a. Price with tariff and without tariff b. Quantity of domestic demand with tariff and without tariff c. Quantity of domestic supplied with tariff and without tariff d. Area of consumer surplus e. Area of producer surplus f. Area of government revenueQuestion 23 (6 points) You have recently opened your own consultancy business. You charge your clients a price of $250 per project and are considering hiring additional employees to assist you in expanding your business. The market wage for consultants s is $1,500 per month. The table provides data on your marginal product for each employee you hire. Answer the following questions based on these information. No. of Employees Marginal Product 12 2 10 3 8 4 6 5 4 6 2 Answer The questions below from A to E based on the above . a. Use the information to calculate the marginal revenue product for each additional number of employees. b. Use the information to calculate the total output associated with each number of employees. c. Use the information to calculate the total revenue associated with each number of employees. d. If this is the monthly wages are only cost you incur from hiring an additional employee, calculate the marginal cost and profits for each additional employee. e. Using the Rational Rule for Employers, how many employees should you hire each month?Question 4 This question has multiple answers: When is it okay to import goods? Select 2 correct answer(s) A When you can get a better deal abroad B When you have comparative advantage over other countries C When you are geographically located in a certain part of the world Question 5 (1 point) Switzerland is has specialized watch factories to create innovative watches. It also has a host of highly trained software engineers. Due to urbanization, it does not have many forests left. Which of the following should Switzerland import and export? A Import watches. Export software and wood. B import wood. Export watches and software. C Import software and wood. Export watches. Question 6: This question has multiple answers This question has multiple answers: In order to figure out if you should import or export, a country has to figure out what it is comparatively better at. Which of the following is a factor that can help towards that? Select 2 correct answer(s) A Comparatively abundant inputs B Benefits of mass production Government interventionQuestion 7: This question has multiple answers Which of the following is not a key insight when it comes to solving externality problems? Select 2 correct answer(s) A Target specific processes, not just bad outcomes. B Corrective taxes are better suited when you accurately know the marginal costs or benefits. C We should support market forces rather than stop them. Question 8 Pizza is an excludable and nonrival good. True False Question 9 (1 point) A river being used to fish by a village can face the tragedy of commons. True False Question 10: This Question has multiple answers The governor is concerned about poverty in the state and proposes that the state minimum wage be raised from $7.25 per hour to $15,00 per hour. Which of the following statements are true as a result? Select 2 correct answer(s) A Labour demand will decrease in the short run, and increase in the long run. B Labour demand will remain relatively unchanged in the short run, but decrease in the long run. Labour supply will increase, but in the long run unemployment may increase