1. Going from one peak to another peak on the business cycle:

A) means the economy is always growing.
B) can never be in a downward direction.
C) can never be at the same growth rate.
D) has to be in an upward direction.
E) can be higher, lower, or the same as the previous peak.

2. The ideal point occurs on the PPF graph and the business cycle graph are:

A) outside the PPF and at the peak.
B) inside the PPF and at the peak.
C) on the PPF and at the peak only.
D) on the PPF and on the contractionary cycle only.
E) on the PPF and on the expansionary cycle, peak, or contractionary cycle.

3. Which of the following statements describes why a person cannot go beyond his/her fullest potential in the long run?

A) I can't keep going at this pace.
B) I can give it 110%, but not for very long.
C) I can't give it any more than I already have.
D) I have reached my limit.
E) All of the above describe the answer to the question.