1. Explain the difference between microeconomics and macroeconomics.2. What are opportunity costs?3.

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1. Explain the difference between microeconomics and macroeconomics.2. What are opportunity costs?3. What is the difference between fixed costs and variable costs?4. How does fiscal policy differ from monetary policy?5. Explain what you understand by the principal-agent problem6. Explain how a natural monopoly can be (price) regulated7. Goods are complements if an increase in the price of one causes a __________ in the demand for the other.8. What is called the increment of output from a one-unit increase in the capital stock, holding all otherfactors of production constant?9. What is crowding out?10. Money has value to society because it performs three socially useful functions. What are thosefunctions of money?

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