1. Draw a line representing the relationship described in each of the following statements:Note: Be sure to identify and label the axes of your diagram.

a. As the weather gets warmer people drink less coffee.

b. A higher price of gasoline make people use more public transportation.

c. Children tend to grow taller with age but at a certain age they stop growing.

Lumber 0 10 20 30 40 50 60 70 80

Wheat

600

500

400

300

200

100

A

B

2. At Point A the country is producing:

a. 30 units of lumber and 300 bushels of wheatb. 400 bushels of wheat and 250 units of lumberc. 550 bushels of wheat and 10 units of lumber d. 550 bushels of wheat and 30 units of lumber

Lumber 0 10 20 30 40 50 60 70 80

Wheat

600

500

400

300

200

100

A

B

3. The opportunity cost of moving from point B to point A is:a. 300 bushels of wheat b. 40 units of lumber c. 30 units of lumber d. 250 bushels of wheat e. 300 bushels of wheat

Lumber 0 10 20 30 40 50 60 70 80

Wheat

600

500

400

300

200

100

A

B

4. The opportunity cost of producing more wheat is:a. Is higher at point B than at point Ab. Is higher at point A than at point Bc. Is the same at both points A and Bd. Is constant along the PPC curve