Below is an Production Possibilities Frontier for producing shoes or hats. A B C D E Hats 0 2 4 6 8 Shoes 30 28 25 12 0 Match the the opportunity costs to the items listed below as you moved from and to these points on the PPF. A to B B to C E to D C to A

True or False. Monetary policy is inevitably imprecise as the effects of monetary policy occur only after long & variable lags.

External costs arise when:

Suppose the following data describe output in two different years: Item Year 1 Quantity Year 1 Price Year 2 Quantity Year 2 Price Oranges 15,000  $     0.20 20,000  $       0.25 Computers 600  $750.00 700  $  840.00 Video Games 8,000  $     0.75 10,000  $       1.00 Compute real GDP in year 2 (Enter as a numeric value e.g. 100000)

Because economic resources are used to produce goods and services, they are called

True or False.  Each state within the United States pays the same amount of unemployment benefits to unemployed workers.

Suppose the following data describe output in two different years: Item Year 1 Quantity Year 1 Price Year 2 Quantity Year 2 Price Oranges 15,000  $     0.20 20,000  $       0.25 Computers 600  $750.00 700  $  840.00 Video Games 8,000  $     0.75 10,000  $       1.00 Compute real GDP in year 2 (Enter as a numeric value e.g. 100000)

Using the graph below identify the equilibrium quantity – read the graph carefully.  (Enter your answer as a numeric value, no dollar sign).

Ceteris paribus, which of the following will cause the supply of milk shakes to increase?

Market failure means that the economy is definitely producing: