1) You are hired by the government toevaluate the impact of a policy change thataffects one group of individuals but notanother. Suppose that before the policychange, members of a group affected by thepolicy averaged 16,431 in earnings, andmembers of a group unaffected by the policyaveraged 14,634. After the policy change,members of the affected group averaged17,126 in earnings while members of theunaffected group averaged 15,250 inearnings. What is the estimated effect of thepolicy on individuals' earnings? (Note that theeffect of the policy may be positive ornegative. ) Your answer should be a numericalnumber only (positive or negative). 2)Ben is choosing between cookies and soda.Denote the marginal utility of cookies is MUc,and the marginal utility of soda is MUs. Whichof the following relationship is true regardingthe marginal utility of substitution (MŘS) ofcookie in terms of soda?A) MRS= MUcB) MRS = MUSC) MRS = MUS / MUCD) MRS = MUc / MUs

1) You are hired by the government to evaluate the impact of a policy change that affects one group of individuals but not another. Suppose that before the policy change, members of a group affected by the policy averaged 16,431 in earnings, and members of a group unaffected by the policy averaged 14,634. After the policy change, members of the affected group averaged 17126 in earnings while mnembers of the