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1			The figure above shows Mendork’s production possibility curve for the only two goods that it produces—guns and butter. Refer to this figure to answer the following question. What is the opportunity cost of producing 2 tonnes of butter?
			A)	2 guns
			B)	18 guns
			C)	20 guns
			D)	The answer cannot be determined from the information given

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2			The figure above shows Mendork’s production possibility curve for the only two goods that it produces—guns and butter. Refer to this figure to answer the following question. If new technology increased the output of guns by 50 percent, how many guns could be produced if 6 tonnes of butter were produced?
			A)	18 guns
			B)	20 guns
			C)	15 guns
			D)	10 guns
			E)	0 guns

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3			The figure above shows Mendork’s production possibility curve for the only two goods that it produces—guns and butter. Refer to this figure to answer the following question. If a depletion of resources reduces the production possibilities of butter production by one half, how much butter could be produced if 10 units of guns were produced?
			A)	4 units of butter
			B)	3 units of butter
			C)	2 units of butter
			D)	No butter
4			Which of the following statements describes the law of increasing costs as it relates to the whole economy?
			A)	As the quantity produced of any particular item decreases, its per-unit cost of production rises.
			B)	As the quantity produced of any particular item increases, its per-unit cost of production rises.
			C)	The prices of consumer goods and services always rise and never fall.
			D)	If you wait to make a purchase, you will pay a higher price.
			E)	The total cost of production rises as output goes up.
5			Which of the following statements is correct for a society that emphasizes the production of capital goods over that of consumer goods?
			A)	The society could enjoy the same quantity of capital goods and a larger quantity of consumer goods in the future.
			B)	The society will have to save more now than a society that did not emphasize the production of capital goods.
			C)	The society could enjoy the same quantity of consumer goods and a larger quantity of capital goods in the future.
			D)	The society will grow faster than a society that emphasizes the production of consumer goods.
			E)	All of the above are correct.