D1. Explain the opportunity cost principle. Use the production possibilities curve in explanation. Give some examples of opportunity costs in public administration or public policy.

D2. Explain how GDP is measured. Who measures it? What does it represent, what are its strengths and limitations? In what important way does it differ from real GDP?

D3. Explain what marginal social benefits and marginal social costs mean? Give some examples. What is cost-benefit analysis? Give some examples of the use of CBA in public policy or public administration.