1. Give three examples of important trade-offs that you face in your life.
2. What items would you include to figure out the opportunity cost of a vacation to Disneyworld?
3. Water is necessary for life. Is the marginal benefit of a glass of water large or small?
4. Why should policymakers think about incentives?
5. Why isn't trade among countries like a game with some winners and some losers?
6. What does the "invisible hand" of the marketplace do?
7. Explain the two main causes of market failure and give an example of each.
8. Why is productivity important?
9. What is inflation and what causes it?
10. How are inflation and unemployment related in the short run?