1. Discuss the problem(s) that Microeconomics addresses. How is this different from Macroeconomics?

2. What is meant by Opportunity Cost?

3. What is meant by Comparative Advantage?

4. Discuss the role of Households, Firms and Government.

5. Discuss the law of supply and demand.

6. What is Marginal Utility? Discuss the Law of Marginal Utility

7. Explain why interest rates differ

8. Discuss the role of Entrepreneurs in a free market economy.

9. List and give a short explanation of the accounts that make up the U.S. Balance of Payments.

10. What is the Big Mac index? What does it tell us about long term exchange rates?