1. (8 minutes) Answer any one of the Cooperative Learning Lab (CLL) questions on the page attached to the end of this quiz.  (Available only at CLL.)
 
    2. (5 minutes) This question is based on the supplementary readings selection, "A Divorced Spouse's Professional Degree: Is It Community Property?"
    a. Under California divorce law, does the classification of property as "community property" depend on which marriage partner actually did the work to earn it? If so, explain why. If not, then what is the basis for deciding whether property is community property or not?
    b. When assuming that Mark's medical degree was classified as community property, awards granted in the class reaction papers ranged from 3 to 50 percent of Mark's increased future earnings. Under California divorce law, are all of these percentages acceptable when dividing up community property? Explain briefly.
 
    3. (8 minutes) This question is based on the supplementary readings selection, "The Price of Beer Rises at a Heady Pace, but Americans Are Thirstier Than Ever."
    a. Are there any substitutes for a product like beer? If not explain why not. If so, name one.
    b. Illustrate an initial beer market equilibrium in a supply and demand diagram.
    c. What is the "law of demand"? How, if at all, can we see it in the diagram you drew in part b?
    d. Illustrate what must have happened in the beer market to account for the title of the article. List an event that could account for what you've illustrated (you can make up an event--you do not have to recall one from the article).
    e. Suppose that, in addition to what you indicated in part d, "the costs of barley and packaging of beer cans have increased." Decide whether the combined effects of this plus what you indicated in part d would make the equilibrium price and quantity of beer rise, fall, remain the same, or change in an uncertain direction. Briefly explain your decision.

    4. (12 minutes) Over the past several years, the distribution of income in the United States has been becoming more unequal for two reasons: (1) the income earned by college graduates has been rising, and (2) the income earned by workers with a high-school education or less has been falling.
    a. Carefully explain the impact of trend (1) on changes in (i) the economic (opportunity) cost of acquiring a college degree, (ii) the benefits of a college degree, and (iii) the overall benefit-cost decision to attend college. (Note: a diagram is optional; you can receive full credit for this part with a careful explanation.)
    b. Repeat part a for trend (2).
    c. Draw a supply and demand diagram for the market for college degrees, and illustrate an initial equilibrium tuition price and equilibrium quantity of college degrees. Then illustrate in your diagram how the market would be affected by the answers you gave in parts and b.
    d. Compared to other prices, college tuition has been rising fairly rapidly for the past several years. Based on your analysis here, are you surprised? Explain briefly.

    5. (12 minutes) This question deals with the economic impact of immigration into the U.S. of unskilled workers from other countries.
    a. What would you predict the impact of the immigration of unskilled workers from abroad would be on the domestic wage rate for unskilled workers and on the quantity employed of domestic unskilled workers? Explain your reasoning (no diagram yet).
    b. Draw a supply and demand diagram for the market for unskilled labor, and illustrate an initial pre-immigration equilibrium wage and equilibrium quantity of domestic unskilled workers hired by employers.
    c. Illustrate in your diagram the impact of immigration of unskilled workers. Be sure to clearly label the new equilibrium wage and equilibrium total quantity employed.
    d. Of the new total quantity employed, indicate how many are domestic workers and how many are immigrants.
    e. Overall, does the diagram support the answer you gave in part a? Explain briefly.