1. Which of the following is notincluded in the opportunity cost of going to school?

a.	The money a student could have earned by working if he had not gone to college.
b.	The nap a student could have enjoyed if she had not attended class.
c.	The party a student could have enjoyed if he had not stayed in to study for his exam.
d.	The money a student spends on rent for her apartment while attending school.

2. Suppose you have a choice of working full-time during the summer or going to summer school full-time. Summer tuition and books cost $1,000. If you worked, you could be earning $5,000. Your rent for the summer is $1,500 irrespective of your choice. If these are the only relevant costs to consider, the opportunity cost of going to summer school is:

a. $2,200 b. $1,000 c. $5,000 d. $6,000

3. In the example above, the amount of $5,000 is called:

	a.	Explicit cost
	b.	Implicit cost
	c.	Sunk cost
	d.	Average cost

4. If the price of milk rises, when is the price elasticity of demand for milk likely to be the lowest?

a.	immediately after the price increase
b.	one month after the price increase
c.	three months after the price increase
d.	one year after the price increase

5. What does having comparative advantage over someone else mean?

a. Being more efficient than someone else in producing goods and services. b. Being more productive than someone else in producing goods and services. c. Producing goods and services at a lower opportunity cost than someone else. d. Producing goods and services at a higher opportunity cost than someone else.

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