1. 1. Which of the following correctly shows the production possibilities frontier for a society that produces military and consumer goods,

1.1. Which of the following correctly shows the production possibilities frontier for a society that produces military and consumer goods, represented by "guns" and "butter"? Select the correct graph.2. Which of the following shows a point that is impossible for this economy to achieve? Select the correct graph.3. Which of the following shows a point that is feasible but is not efficient for this economy to achieve? Select the correct graph.4. Imagine that a society has two political parties, called the Hawks (who want a strong military) and the Doves (who want a smaller military). Which of the following shows a point on the production possibilities frontier that the Hawks might choose (labeled "H") and a point that the Doves might choose (labeled "D")? Select the correct graph.5. Imagine that an aggressive neighboring country reduces the size of its military. As a result, both Hawks and Doves reduce their desired production of guns by the same amount. Which party would get the bigger "peace dividend," measured by the increase in butter production? Select the correct answer.2. Classify the following topics as relating to microeconomics or macroeconomics.1. a family's decision about how much income to save--select--a. microeconomicsmacroeconomics 2. the effect of government regulations on auto emissions --select-- a. microeconomicsb.macroeconomics3. the impact of higher national saving on economic growth --select-- a. microeconomicsb. macroeconomics4. a firm's decision about how many workers to hire --select-- a. microeconomicsb. macroeconomics5. the relationship between the inflation rate and changes in the quantity of money --select-- a. microeconomicsb. macroeconomics 3. Classify each of the following statements as positive or normative:1. Society faces a short-run tradeoff between inflation and unemployment.--select-- a. positiveb. normative2. A reduction in the rate of growth of money will reduce the rate of inflation. --select-- a. positiveb. normative3. The Federal Reserve should reduce the rate of growth of money.--select-- a. positiveb. normative4. Society ought to require welfare recipients to look for jobs.--select-- a. positiveb. normative5. Lower tax rates encourage more work and more saving. --select-- a. positiveb. normative 4. Pat and Kris are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: Making pizza and brewing root beer. Pat takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Kris takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza.Round to two decimal places or enter answer as a fraction, such as '1/2'.1. What is Pat's opportunity cost of making a pizza? gallons of root beer 2. What is Kris's opportunity cost of making a pizza? gallons of root beer 3. Who has the absolute advantage in making pizza?--select-- a. Patb. Krisc. neither4. Who has the comparative advantage in making pizza?--select-- a. Patb. Krisc. neither5. If Pat and Kris trade foods with each other, who will trade away pizza in exchange for root beer?--select-- a. Patb. Kris6. The price of pizza can be expressed in terms of gallons of root beer. What is the highest price at which pizza can be traded that would make both roommates better off? gallons of root beer 7. What is the lowest price at which pizza can be traded that would make both roommates better off? gallons of root beer 5.This is a "drag-and-drop" question. Click on the curves below and drag them to a new location on the graph that will depict the change being described.Use the diagram below to explain the following statement:1. "When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country."This is a "drag-and-drop" question. Click on the curves below and drag them to a new location on the graph that will depict the change being described.Use the diagram below to explain the following statement:2. "When the weather turns warm in New England every summer, the price of hotel rooms in Caribbean resorts plummets."This is a "drag-and-drop" question. Click on the curves below and drag them to a new location on the graph that will depict the change being described.Use the diagram below to explain the following statement:3. "When a war breaks out in the Middle east, the price of gasoline rises."This is a "drag-and-drop" question. Click on the curves below and drag them to a new location on the graph that will depict the change being described.Use the diagram below to explain the following statement:4. "When a war breaks out in the Middle east, the price of a used Cadillac falls."This is a "drag-and-drop" question. Click on the curves below and drag them to a new location on the graph that will depict the change being described.6.1. The diagram shows the market for sweatshirts. Suppose that a hurricane in South Carolina damages the cotton crop. Use the diagram to show the effect on the market for sweatshirts.This is a "drag-and-drop" question. Click on the curves below and drag them to a new location on the graph that will depict the change being described.2. The diagram shows the market for sweatshirts. Suppose that the price of leather jackets falls. Use the diagram to show the effect on the market for sweatshirts.This is a "drag-and-drop" question. Click on the curves below and drag them to a new location on the graph that will depict the change being described.3. The diagram shows the market for sweatshirts. Suppose that all colleges require morning exercise in appropriate attire. Use the diagram to show the effect on the market for sweatshirts.This is a "drag-and-drop" question. Click on the curves below and drag them to a new location on the graph that will depict the change being described.4. The diagram shows the market for sweatshirts. Suppose that new knitting machines are invented. Use the diagram to show the effect on the market for sweatshirts.7. For each of the the following pairs, indicate the good which you would expect to have more elastic demand: 1. --select--a. Required textbooksb. Mystery novels2. --select-- a. Beethoven recordingsb. Classical music recordings in general3. --select-- a. Subway rides during the next 6 monthsb. Subway rides during the next 5 years4. --select-- a. Root beer b. Water8.Pharmaceutical drugs have an inelastic demand and computers have an elastic demand. Suppose that technological advance doubles the supply of both products (that is, the quantity supplied at each price is twice what it was).1. The equilibrium price in both markets will:--select-- a. falb. lrisec. remain the same2. The equilibrium quantity in both markets will:--select-- a. fallb. risec. remain the same3. Which product experiences a larger change in price?--select-- a. Pharmaceutical drugsb. Computers4. Which product experiences a larger change in quantity?--select-- a. Pharmaceutical drugsb. Computers5. Total consumer spending on pharmaceutical drugs will:--select-- a. fallb. risec. remain the same6. Total consumer spending on computers will:--select-- a. fallb. risec. remain the same