Question 5 [Max 100 words, 3 marks] Draw a diagram that illustrates the profit-maximising decision of an individual laptop manufacturer you discussed in the previous question. Fully label your diagram. You may make up numbers of simply use appropriate notations for the purpose of labelling your diagram. Briey explain the key information of your diagram. Question 6 [Max 200 words, 4 marks] Use the gures below to answer the following question. The gure on the left is the payoff matrix that represents the invisible hand game where two farmers decide which crop to plant, with the Nash equilibrium circled. The gure on the right illustrates the gains from trade realised in a perfectly competitive market. Suppl! (marginal cost) Quantity Discuss the common idea that is implied by both the invisible hand game and the perfectly competitive market. Question 7 [Max 200 words, 5 marks] Figure A illustrates the trends in global and between-country income inequality measured by the Gini coefficient between 1945 and 2015. Recall that the between-country income inequality below is calculated based on the assumption that everyone in a nation makes the nation-wide average income. Figure B shows the share of income received by the top 1% in six countries between 1910 and 2015. Figure A Figure B 1929 Start of 0.75 Global inequality: inequality among all individuals in the world Great Depression 1918 1945 1973 End of golden 2008 Start of global End of WW1 End of Will age of capitalism financial crisis 10 Inequality between countries (hypothetical) 25 0.50 US 20 South Africa Inequality (Gini coefficient) Argentina Income share of the top 1%% (%%) LIK 15 China 0.25 India 10 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 1975- 1945- 1965- 1940- 1920- 1925- 1960- 1910- OEGT 1935- 1950- 1955- 1970- 1980- 2015- 1985- 2000- 2010- 1915 1990 1995- 2005- Year Year Address the following: Briefly describe the overall trend since 1980 shown in Figure B. Explain how the overall trend since 1980 in Figure B (which you just described) is shown in Figure A. Question 8 [Max 200 words, 5 marks] Figure C below shows the projected job growth between 2014 and 2024 for occupation groups of different wages. Figure C Top quintile (above $66,790) Second quintile (below $66,790 and above $44,040) Third quintile (below $44,040 and above $33,280) 2014: occupations with mean annual wage Quintiles of employment in Fourth quintile (below $33,280 and above $26,380) Fifth quintile (below $26,380) 1,000 2,000 3,000 Total projected job growth 2014-24 (thousands of employees) Discuss how Figure C is related to the overall trend in inequality since 1980 in Figure B (which you described in the previous question)