1. State the first four steps in the process of theory building.
2. Explain how the opportunity cost of having children differs for women in rich countries and women in poor countries.
3. State the theory behind the observation that people in small towns are more friendly, honest, and decent than people in big cities.
4. Explain why instructors at certain universities may take demand-reducing actions.
5. State what is likely to happen to the crime rate if being in prison involved hard labor.
6. Discuss the likely explanation for a higher number of students wearing baseball caps on exam days.
7. State one possible explanation for why comparable houses are priced differently.
8. Explain one of the predictions of the theory that a monetary gift will end up going for whatever is next on the recipient’s list to purchase.
9. State the implication of a downward-sloping marginal benefits curve for gift-giving.