Q'U'ESTTO'N1 Which of the following is not true aboutAdam Smith's "Invisible Hand"? 0 A. The housing crash of 2008-2009 was a scenario where the invisible hand worked. 0 B. More innovations can be a byproduct ofthe Invisible Hand 0 C. Prices adjust automatically, balancing out the supply and demand, which is done by this "invisible hand" 0 D.The invisible hand is talking about letting the market behave and function on its own. QUESTION 2 If the ination rate is low, what can we say about interest rates? 0 A. All three are true. 0 B. Interest rates and ination rates generally move in the same direction. 0 C. They might have been higher in the past, but are low now. 0 D. In the future, interest rates will probably rise as ination rates start to go up again. QUESTION 3 Since 2012, North Carolina's unemployment rate has gone down by about 6% to the current unemployment rate of about 4%. Knowing this, which of the following is probably most likely true during the last seven years? 0 A. While the economy usually has its ups and downs, the overall trend has been positive (in terms of economic activity). 0 B. While the economy usually has its ups and downs, the overall trend has been negative (in terms of economic activity). QUESTION 4 Which of the following is not true? 0 A. Rational people only "go for it" if whatever they are trying to obtain has greater value than the opportunity cost of whatever they are forgoing. O B. Opportunity cost is the same across different individuals 0 C. Opportunity cost can be thought of as the slope of the PPF O D. Opportunity cost is the next best thing you have to give up to get something. QUESTION 5 Suppose that Microsoft produces PC's and Gaming-Consoles. If Microsoft only produces PC's, it could produce 500E] PC's a day. On the other hand, if it only produces Gaming-Consoles, it could produce 8000 a day. If PC's are on the X - axis and gaming consoles are on the Y - axis, what is the slope ofthis PPF? O A. 5/8 0 B. 8/5 0 C. -5/8 0 D.-8/5