Instructions: Multiple Choice Questions: Each of the multiple choice questions or incomplete statements below is followed by suggested answers or completions. Select the one that is best in each case.

Free Response Questions: Respond to the questions in the text boxes provided. In answering questions, you should emphasize the line of reasoning that generated your results; it is not enough to list the results of your analysis. Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. Clearly label each part of the answer. Only text that is included in the text boxes will be scored. Diagrams, if …show more content…

A
B
C
D
E
Points earned on this question: 2

Question 10 (Worth 2 points)

Production Possibilities for
MP3 Players and Semi Trucks
MP3 Players
Semi Trucks
0
5
8
4
19
3
28
2
35
1
40
0

Using the table above, a combination of eight MP3 players and two semi trucks, is unattainable given the resources in the economy. is attainable and efficient. is attainable but inefficient. is unattainable and inefficient. is unattainable even through trade with another nation.
Points earned on this question: 2

Question 11 (Worth 2 points)

When the international value of the dollar decreases,
Americans pay less for foreign goods. the U.S. trade deficit increases.
U.S. imports decrease.
Americans would demand more foreign currency.
U.S. exports decrease.
Points earned on this question: 2

Question 12 (Worth 2 points)

Structural unemployment is always present in the economy. is zero when the natural rate of unemployment is at three to five percent. is voluntary. would be eliminated by an increase in the minimum wage. is caused by changes in the business cycle.
Points earned on this question: 2

Question 13 (Worth 2 points)

In Drewland, the money supply equals $1,000, real GDP equals $2,000 and the price level is 1.5 then the velocity of money is
1.
2.