1.What forces us to make choices?

2.Give two examples of the opportunity cost of to the beach next week, one being a time opportunity cost and the other being a money opportunity cost.

3.Looking at the circular flow diagram, what is necessary to produce? In other words, what do firms have to purchase the use of, in order to make products?

4.What is allocative efficient? What is productive efficient? According to Adam Smith, why do firms and markets tend towards allocative and productive efficiency (Invisible Hand)?

5.Who determines how much utility an individual will receive from consuming a good?

6.Would you expect total utility to rise or fall with additional consumption of a good? Why?

7.Would you expect marginal utility to rise or fall with additional consumption of a good? Why?