Price of X Supply P Demand Good X Q\fQuestion 1 Economists say that individuals make decisions at the margin. What does this mean? Give an example how you may have made such marginal decision.Question 2 3 The higher the relative opportunity cost of attending college the more likely an individual will be willing to attend college. Do you agree? Explain your answer. Question 3 What does the principle of "Diminishing Marginal Utility\" tell us? How is this concept used to explain the law of demand? Question 4 4 pts We already know "law of supply" tells us that as price of a good increases (decreases), quantity supplied of that good also increases (decreases). Explain how economists use the principle of "Increasing {Opportunity} Cost" to explain "law of supply". {3 points] Question 7 12 pts Harry, an aspiring tennis player, who must also take an ECON course, has set aside 10 hours each week to either play tennis and/or study economics. Harry's PPF graph below shows the combinations of choices available to him. When responding to the following questions you must explain if Harry is efficient or inefficient in his choices, when does have to tradeoff. You should use terms such as scarcity, choices, efficiency, and trade off, to answer the questions. FIGURE 2.2 80 - k 75 C 70 Harry's PPF Grade in economics (percent) 60 SO 40 10 Tennis [hours per week) 1. Explain if a point like "g" inside the PPF is efficient or inefficient. (2 points) 2. Explain the movement from point "g" to point "d". Does Harry have to trad off grade with hours of playing tennis? (4 points) 3. Explain the movement from point "d" to point "e"? Does Harry have to trad off grade with hours of playing tennis? Is his choice at either "d" or "e" efficient or inefficient? (2 points) 4. Is Harry's choice at point "f" an efficient one? explain. (2 points)