1.- You can spend spring break either working at home for $125 per day for five days or go to a Caribbean resort for the week. If you stay home, your personal expenses will total about $120. If you go to the resort, the airfare, hotel, food and miscellaneous will total about $1,200. What is your opportunity cost of going to the resort?

2.- Why does international trade occur? What does it mean to run a deficit in the merchandize trade balance?

3.- Leading and lagging economic indications and give an example of both.

4.- Explain how technological changes can cause unemployment in some areas? How it can create employment opportunities in other areas? Give an example.

5.- What is the spending multiplier? Give an example of how it works?

6.- How expected prices levels and short run aggregate supply relates to expansion and recessionary gaps.

7.- Describe at least two automatic stabilizers and explain how they work.