1. Mike told his mates that in the last month he has been thinking of either taking a gap year, working full time or going to University.After chatting with his parents, he decided to attend University. Define and explain the opportunity cost of Mike's decision to go to University.
2. Assume the amount of beer consumed in the pubs of Melbourne and the amount of rice eaten in the Melbourne restaurants have both been increasing over the last 20 years. Draw a graph showing their relationship and use these two events to highlight the difference between the concepts of correlation and causation.
3. What is the importance of the assumption "ceteris paribus"?
4. Why is the question "What" a fundamental economic question of production?