1. A slice of pizza at the local pizzeria is $1.50 per slice. Sam feels that the first slice of pizza is worth $5, the second slice worth $3, and all subsequent slices are $1 each. How many slices will he purchase if he has $5.00? _____How many would he buy if he only had $3.00? _____

1. Give an example of a decision you recently made that included you having to consider "opportunity cost"

Ch 2 -

1. A firm is producing 400 loaves of banana bread daily. The cost or resources are as follows:

5 units of labor at $40/ person

7 units of "land" at $60/each

2 units of capital at $60 each

Entrepreneurial ability at $20.

If the firm sells 400 loaves at $2/each what is the:

Total Revenue: _______

Total Cost: ______

Profit: _____ or Loss: _____

1. What is the major differences between an command economic system and a market system?

Ch 3-

1. How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity? Do price and quantity rise, fall or remain the same.

Supply decreases and demand is constant

Demand decreases and supply is constant

Supply increases and demand is constant

Demand increases and supply increases

Demand increases and supply is constant

Supply increases and demand decreases

Demand increases and supply decreases

Demand decreases and supply decreases

1. What helps explain changes in prices of items over the last several months?

Why are the prices of houses and used cars going up so much?

1. Briefly explain two causes of market failure. For example public goods and externalities.

1. When should government get involved?

Ch 5 - What are two characteristics of a public good and how does it differ from a private good?

Ch 6 - What is the difference of Real GDP and Nominal GDP. What is the significance?

Ch 7 -

1. Which of the following would count in GDP?

Kerry buys a new sweater.

Patricia receives her social security check

Robert gives his daughter $50 for her birthday

Josh sells his 100 shares of GE stock

Karen buys a new car

Amy buys a used car

1. Why can't you count intermediate goods in GDP?