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answer the following 2 concptual question in realtime with n 1h. 2 short answer conceptual question.1. Consider a country called Geiselia. The market for higher education in Geiselia is completely private — there are no public universities (like UCSD). Suppose that around 60% of young people in Geiselia graduate from college.a) (8 points) The government of Geiselia has a good understanding of the concepts covered in Econ 151. Why might the government be worried that the share of young people who obtain a college degree is “too low”? Provide one reason as well as a brief explanation of that reason.b) (9 points) To increase the share of young people that go to college, Policymaker A suggests that the government set up public universities that offer discounted tuition (like UCSD). However, Policymaker B is concerned that this policy, which would be costly for the government, might only cause a small increase in college-going. Why might this happen? Explain.c) (9 points) To settle the debate between A & B, the government of Geiselia asks you, an economist, to estimate the causal effect of creating public universities on college graduation rates. You know that the neighboring country of Seussia created public universities in 2018 (note: these public universities are only open to citizens of Seussia). In 2017, the graduation rate in Geiselia was 63%, whereas the graduation rate in Seussia was 54%. In 2019, the graduation rate in both Geiselia and Seussia was 70%. Explain how you would go about calculating the estimate that the government has asked for.d) (9 points) What assumption do we need to interpret this estimate as the causal effect?2. Birdwatching (or “birding”) is a hobby in which people who care about birds observe birds in their natural habitats. eBird.org is a website on which birdwatchers can publicly report information about the birds they see, in order to help other birdwatchers. (For example, Bob can write “I saw a woodpecker near the Economics Department at 11:00 AM today” and that helps Bill, who is particularly interested in seeing woodpeckers.)Hint: you can assume that the owners of eBird.org cannot prevent individuals from accessing the website.a) (7 points) Suppose that creating a report on eBird is costly — it takes time and effort. Despite these costs, eBird has over 500 million bird entries, from all over the world. Using the concepts from this class, interpret this seeming contradiction.b) (9 points) Is it likely that the quantity of birding information provided on eBird.org is at the social optimum? Why or why not?c) (9 points) Last year, eBird.org decided to start featuring the birder who contributed the most observations over the last year on their homepage. Reports of bird observations submitted to eBird.org increased. Interpret, providing a brief explanation.