1. How are economic profits defined? A. total revenue minus total opportunity cost. B. marginal revenue minus marginal cost. C. total revenue minus total cost D. total profits of the economy as a whole.

2. You are working at Bremen Beck's brewery. If marginal costs of producing Becks exceed the marginal benefits, then: A. the firm ends up with a net loss. B. the firm's average costs exceed average benefits. C. the firm should decrease its production level. D. none of the statements associated with this question are correct.

3. The opportunity cost of an action is the.... A. monetary payment the action required. B. the value of the most highly valued alternative action given up. C. cost of all alternative actions that could have been taken. D. none of the statements associated with this question are correct.

4. As the interest rate increases, the opportunity cost of waiting to receive a future amount: A. increases. B. decreases. C. may rise or fall. D. remains the same.