mes New Ro 111 A A - PO 3 I V - ab x x ADA. Font Paragraph True Fabe Indicate whether the sentence or statement is tow or flaise. _T_ 1. Models are simplifications that are used to observe the workings of a system. _F__ 2. Slope is measured as runrise, _T_ 3. Opportunity cost is the combined value of all other alternatives that are not chosen. 4. Monetary costs and opportumity costs are always identical. 5. If the PPF for guns and butter is bowed outward from the origin, this indicates constant (not increasing) opportunity cost between the two goods. _1_ 6. From a society's viewpoint, when all resources are fully employed, a decision to have more of one thing means we must give up some of another thing FL 7. A market economy allocates resources primarily in accordance with orders from government bureaucrats. 08. Economists use the term capital to describe that factor of production that includes bruman-made resources such as factories, buildings, machinery and tools. 9. Although all points on the PPF are efficient, that alone does not tall us which point is "best" for the society 10. In terms of efficiency, any point on a production possibilities frontier is as good as any other 11. If two persons trade, obe must gain at the expense of the other 12. A change in the price of bamburgers will shift the supply curve for hot dogs. 13. If the demand curve shifts outward to the right and the supply curve remains the same, equilibrium price will fall. 14. A decrease in the price of DVD players will increase demand for movies on DVD.. 15. Demand curves can be affected by the prices of related goods 16. If the price of hamburger rises, we would expect the demand for steak to shift to the right. 17. Cost-reducing technological advancements allow suppliers to earn more profits but have no maticeable effect on the supply curve. 18. An increase in real consumer income will shift both the supply and demand currez 19. Rent controls encourage unveimet in housing because they bring stability to the market. 20. Price ceilings are designed to protect sellers, while price floors are designed to protect buyers. 21. If aggregate de and keeps shifting ngirward mouth after month and aggregate supply rents contaal, the coconly will experience a receision 22. Gross Domestic Product represent the money tale of all final goods and services prochaced in the domestic econonny within the LP e to search