1. Suppose that you have saved $100. You can spend it today or you can put it in your savings account for a year and earn 5% interest. What is the opportunity cost of spending the money today?
2. What is the difference between capital goods and consumer goods?
3. What is the opportunity cost of producing a capital good such a new road?
4. In economic terminology, what is the meaning of investment?
5. How does an individual know whether or not an investment in education is worthwhile?
6. Define opportunity cost. Given the definition of opportunity cost, explain what is meant by the statement "There is not such thing as a free lunch."