Question 66 1 pts 66. Equity may be defined as the property of (BE CAREFUL!) A distributing economic prosperity fairly among the members of society B a resource allocation that maximizes the total surplus received by all members of society C distributing economic prosperity uniformly among the members of society OA OC OB Question 67 1 pts 67. Here are four statements about (price) elasticities of demand and supply in the market for water. Which statement(s) is (are) true? A The demand for water is MORE elastic in the short run than in the long run. B The demand for water to drink is LESS elastic than the total demand for water for all other purposes. C The supply of water is LESS elastic in the short run than in the long run. D The supply of drinking water is likely to be MORE elastic than the supply of water for irrigation. OD OC O B QA Question 68 1 pts 68. This question tests your understanding of the principle of comparative advantage. (BE CAREFUL!) Assume that in an isolated village each household specializes in the production of the good in which they enjoy a comparative advantage. It follows that each household specializes in the production of the good for which the opportunity cost of production is O low O high Question 69 1 pts 69. Here are three statements about free trade and protection (tariffs and quotas). Identify the NORMATIVE statement(s) A Free trade benefits the importers and exporters in each country. B Tariffs and quotas reduce the gains from exchange. C The government should abolish tariffs and quotas and allow free trade. OC OB O A Question 70 1 pts 70. Here are three statements about free trade and protection (tariffs and quotas). Most economists believe that free trade benefits the importers and exporters in each country. Most economists believe that tariffs and quotas reduce the gains from exchange Most economists believe that the government should abolish tariffs and quotas and allow free trade Choose the correct option from the list below. (BE CAREFUL!) A All three are positive statements. B I and II are positive statements, and Ill is a normative statement. C All three are normative statements. OA OB OC