1.Each public project hascost and benefits tags. Anypublic project is considered optimalif

A.Total cost of the project = Total benefits of the project

B.Average cost = Average benefits

C.Marginal benefits < Marginal costs

D.Marginal cost equals the marginal benefits (MC = MB)

2.Suppose that you are given a$200 budgetat work that can be spent only on two items: calculators and notebooks. Ifcalculator costs $50 eachandnotebook costs $10 each, then theopportunity cost of purchasing one calculator is:

A.10 notebooks

B.5 notebooks

C.50 notebooks

D.2 notebooks

3.The problems ofrising housing prices and unemploymentin theworld economiesare

A.Related to the advanced countries only

B.Relevant to the U.S economy only

C.Major topics of microeconomics

D.Major topics of macroeconomics

4.Which of the following isNOT true?

A.Law of Demand states an inverse relation between price and quantity demanded

B.Change in demand is also known as extension and contraction in demand

C.Change in demand is also known as increase and decrease in demand

D.More the price, less is the quantity demanded, other things being equal