101.     The opportunity cost of attending college

            a.         consists of the tuition costs only.

            b.         consists of the tuition costs plus the costs of room and board and other expenses.

            c.         is zero, if the scholarship covers the costs of tuition, room and board, and other expenses.

            d.         varies from person to person.

            e.         both b and c

102.     Prior to attending college, Darius is offered a lucrative four-year contract as an actor in a daytime soap opera. Assuming that acting and attending college are Darius’ preferred alternatives and that he must choose between the two, his cost of attending college after receiving the offer

            a.         increases.

            b.         decreases.

            c.         stays the same.

            d.         increases or stays the same depending on whether he accepts the offer.

103.     Assume that the production and sale of yo-yos are declared illegal and punishable by law. We can conclude that the cost of supplying yo-yos

            a.         decreases.

            b.         increases.

            c.         does not change.

            d.         either b or c, depending on whether a money fine is involved or not.

104.     If it is discovered that using drugs enhances a person’s chance of contracting a lethal disease, the cost of using drugs

            a.         increases.

            b.         decreases.

            c.         is not affected.

            d.         is irrelevant, since they are illegal anyway.

105.     A person arguing against the repeal of capital punishment by citing its association with the crime rate is

            a.         assuming that the repeal would decrease the cost of committing a crime.

            b.         assuming that the repeal would increase the cost of committing a crime.

            c.         assuming that the repeal has no influence on the cost of committing a crime.

            d.         an advocate for the “eye for an eye” principle.

106.     The study of an economy’s price level is explicitly a part of

            a.         macroeconomics.

            b.         microeconomics.

            c.         positive economics.

            d.         normative economics.

107.     Opportunity cost is the __________ alternative forfeited when a choice is made.

            a.         least-valued

            b.         most highly-valued

            c.         most convenient

            d.         most recently considered

108.     There is no such thing as a free lunch is a saying that expresses the idea that

            a.         opportunity costs are incurred whenever a choice is made.

                        b.   association is not necessarily causation.

            c.         the fallacy of composition is responsible for many errors in economic thinking.

            d.         food is very expensive these days because of inflation.

109.     Milton Friedman’s position is that a theory should be judged by the

            a.         realism of its assumptions, and all economists agree with him.

            b.         realism of its assumptions, but many economists disagree with him.

            c.         usefulness of its predictions, and all economists agree with him.

            d.         usefulness of its predictions, but not all economists agree with him.

110.     A vital principle in testing theories is simply put as:  “association is not __________.”

            a.         normative

            b.         necessary

            c.         causation

            d.         reversible