True/False/Indeterminate

State whether each of the statements is true, false, or indeterminate

(that is, the statement cannot be determined to be true or false from the information given). Then

give a brief explanation

1. Suppose you have a city that has very low land-use regulations. If we increase land-

use restrictions in this city, we would expect national carbon emissions to increase because

rents will decrease and people will move into this city

2. Suppose that a city cuts its business taxes. All else equal, we would expect an

increase in both equilibrium wage and employment (hint: drawing a graph is a fine way to

justify your answer).

3. Minimum wages unambigously decrease employment when they are binding.

4. Silicon Valley is an example of an urbanization economy.