Exhibit 2-2 Production possibilities curve
In Exhibit 2-2, the opportunity cost of coffee when moving from A to B is:

The producer surplus of making and selling 10 chairs is found by

A) multiplying the selling price by 10. B) subtracting the marginal cost from the selling price for each chair and summing the differences for all 10 chairs. C) subtracting from the total revenue the cost of producing one chair multiplied by 10. D) adding the marginal cost and the price of all 10 chairs. E) None of the above answers is correct.

The Fed can determine how the money demand curve has shifted by

a. studying interest rate changes b. looking at the number of new loans c. studying unemployment compensation claims d. experimenting with changes in credit conditions e. checking the size of the federal budget deficit