1.Consider Figure 2.1 on page 60. Between points c and d, the opportunity cost of __________ tons of wheat is __________ tons of steel. 2. Arrow up or down: An increase in the wage for high school...

1.Consider Figure 2.1 on page 60. Between points c and d, the opportunity cost of __________ tons of wheat is __________ tons of steel.

2. Arrow up or down: An increase in the wage for high school graduates __________ the opportunity cost of college.

3. Arrow up or down: An increase in the market interest rate __________ the economic cost of holding a $500 collectible for a year.

4. You just inherited a house with a market value of $200,000 and do not expect the market value to change. Each year, you will pay $1,800 for utilities and $1,000 in taxes. You can earn 4 percent interest on money in a bank account. Your cost of living in the house for a year is $__________.

5. What is the cost of a pair of warships purchased by Malaysia?

6. Conservationists have a new strategy for preserving rainforests: __________ loggers and other developers for the land, paying as little as $ __________ per hectare per year.