Q1. If you spend the next hour working at Mcdo, you will earn $10. If instead you spend the next hour studying economics, your next test score will improve by five marks. Calculate the opportunity cost of studying in terms of dollars given up per mark. Calculate the opportunity cost of working in terms of marks given up per dollar.

Q2. The best auto mechanic in town (who charges $120/hr) is also a better typist than her office manager (who earns $20/hr). The mechanic decides to do her own typing. Is this a smart choice for her to make? Explain your answer. [Hint: The best alternative employment for the office manager is another office job that also pays $20/hr.]