Question 3 [Mandatory] [10 points} E-Il The starting wage offered to health care workers in nursing homes rose during the pandemic. This is primarily the result of: [:1 declining demand andr'or rising supply of health care workers. I: :2: rising demand andfor falling supply of health care workers. Iii:1: declining demand for health care workers. ('5, a growth in both demand and supply of health care workers, but supply '- increased faster than demand. Question 4 [Mandatory] [10 points} E-Il Wthh of the following is a normative question? ("'3 Do increased unemployment benefits results in an increase in unemployment H rates? ("'3 If an employer mandates that all workers be vaccinated, would this raise or lower H their wage rate they have to pay workers? ,f'j, Would the introduction of a singlepayer health care system affect employee H tumoyer? {:3 Should the government offer incentives to workers to he yaccinated? Question 5 [Mandatory] {10 points} E-Il Consider a diagram containing indifference curyes for income and leisure, with income on the vertical axis. Ceteris paribus, steeper indifference curves imply that a person: IZ:__:ZI places a high VEILIE on income '3:._.:' places a relatiyely low value on leisure time. IZ:__:ZI places a relatiyely high value on leisure time. {5:} enjoys time working more than time spent at leisure. Question :5 [Mandatory] [10 points} E-II An increase in nonlabor income will cause a budget constraint to: {3| become flatter. {3' become steeper. I: 3| shift yertically upward. {j shift 1\"vertically downward. Question F [Mandatory] {25 points} E-Il A} F'royider in your own words. an intuitive explanation of the substitution and income effects associated with a wage increase. {13 points} B} If there is an increase in non-labor income, describe the effect on indifference curves, the budget constrain, and labor supply. [12 points}