NO NEED EXPLANATION

2B. Do the following 4 statements involve opportunity cost in attending your

college? (Underline and bold yes or no.) 4x1=4

i. The money you spend on meals while in college (Yes / No).

ii. The tuition you pay (Yes / No).

iii. The money you spend on commuting between home and college (Yes / No).

iv. The income you could have earned if you worked (Yes / No).

(over please)

Multiple Choice Questions

(Underline and bold the best answer letter) Points

5x1= 5

3. Economics studies

A. how businesses earn profits.

B. how people earn a living.

C. the allocation of income among different sector of the economy.

D. how scarce resources are used most efficiently.

4. In a two-factor set of economic relationships, the variable that is influenced by

the other variable is

A. the dependent variable.

B. the fixed variable.

C. the inverse variable.

D. the independent variable.

5. Which of the following is not included in the subject matter of microeconomics?

A.The theory of the firm.

B. Inflation.

C. Costs to the firm.

D. None of the above.

6. Which of the following statements is not true of economics?

A. It is a social science.

B. It forms laws through laboratory experiments.

C. It is analytical.

D. It is concerned with people's material well-being.

7. Adam Smith believed society is best suited to:

A. Government planning.

B. Wage and price controls.

C. Command economics.

D. Self-interest.