1. (10 points) List some of the opportunity costs of attending college. Be sure to include explicit (out of pocket) costs as well as implicit costs. Would any of your out-of-pocket costs not be true opportunity costs? Explain your answer. 2. (10 points) Graph the PPF for an economy that faces constant, rather than increasing opportunity costs in the production of two goods (call them A and B). On the same graph, show the change in the PPF assuming that much of the economy is damaged by a war. 3. (10 points ea.) Discuss, and illustrate with a graph, how each of the following events would affect the equilibrium price and quantity in the market for coffee in the US: a) A blight on coffee plants kills off much of the Brazilian crop b) The price of tea (a substitute) declines sharply c) Coffee workers organize themselves into a union and gain higher wages d) Coffee is shown to cause increases in intelligence and attractiveness