ECON 2030 FINAL LSU Questions With
Correct And Verified Answers
microeconomics b- bcorrect banswers✔✔-issues bthat baffect bindividuals, bfirms, bspecific
bindustries, bspecific bjobs, bspecific bmarkets, betc. b
-ex: bdentist, bsales bmanager, bbeef bmarket, bcoffee bmarket
macroeconomics b- bcorrect banswers✔✔-issues bthat baffect bthe bwhole beconomy
-ex: binflation b--> baffects ball bprices/markets, bunemployment brates b--> baffects ball
bjobs, bgrowth b--> baffects bwell bbeing bof ball bindividuals
reminder: beconomic bgrowth=macroeconomic
"How bhas bemployment bin bthe bUnited bStates bchanged bover bthe blast b12 bmonths?"
bis ban bexample bof ba b_____ bquestion. b- bcorrect banswers✔✔macroeconomic
"Eli bLilly bis bshedding b3,500 bworkers—over b8% bof bits bglobal bstaff—and bclosing
bseveral bfacilities bin ba bbid bto bcut b$500 bmillion bin bannual bcosts. bThe bAmerican
bdrugmaker's brevenues bwere bup b8% bin bthe bfirst bhalf bof b2017, bat bmore bthan b$11
bbillion. bBut btougher btimes blie bahead bas bpatents bon bblood-thinning band bADHD
btreatments bexpire." bThis bquote bis ban bexample bof ba bnews bitem babout ba b_____
bissue. b- bcorrect banswers✔✔microeconomic b(only btalking babout bone bcompany, beli
blilly)
"The bEuropean bCentral bBank bsaid bthe beuro bzone bgrew bfaster bthan bexpected bin
bthe bfirst bhalf bof bthe byear, band braised bits bgrowth bforecast bfor bthe bbloc bfor b2017,
bto b2.2%—the bfastest bpace bin bten byears. bFrance's bpresident, bEmmanuel bMacron,
bthrew bhis bweight bbehind ba bGerman bproposal bfor ba bEuropean bMonetary bFund bto
bdampen beuro-zone beconomic bshocks." bThis bis ban bexample bof ba bnews bitem babout
ba b_____ bissue. b- bcorrect banswers✔✔macroeconomic
benefit b- bcorrect banswers✔✔what bis brecieved
opportunity bcost b- bcorrect banswers✔✔what bis bgiven bup; bbenefit bfrom bthe bbest
balternative bnot bchosen
rationality b- bcorrect banswers✔✔do bsomething bif bthe bbenefit bis bat bleast bas bgreat
bas bthe bopportunity bcost bat bthe btime bof bthe bdecision; bbenefit b≥ bOpportunity bCost
,sunk bcost b- bcorrect banswers✔✔a bmonetary bexpenditure bincurred bregardless bof bthe
boption bchosen; birrelevant bto bthe bdecision
marginal bcost b- bcorrect banswers✔✔the bextra bcost bof bdoing bone bmore bunit bof
bsomething
Suppose bRemus bdecides bto bgo bfishing bat bLake bPescaccio bon bhis bday boff bfrom
bwork, bbut bhe bfaces ba bchoice: bhe bcan bfish bthe beast, bsouth, bor bwest bside bof bthe
blake. bHis bexpected bcatch bfor bthe bday bis bas bfollows: b3 bfish bon bthe beast bside, b7
bfish bon bthe bsouth bside, bor b5 bfish bon bthe bwest bside. bEverything belse bheld
bconstant, bRemus' bbenefit bof bfishing bthe beast bside bof bthe blake bis b_____ bfish. b-
bcorrect banswers✔✔3
Suppose bRemus bdecides bto bgo bfishing bat bLake bPescaccio bon bhis bday boff bfrom
bwork, bbut bhe bfaces ba bchoice: bhe bcan bfish bthe beast, bsouth, bor bwest bside bof bthe
blake. bHis bexpected bcatch bfor bthe bday bis bas bfollows: b3 bfish bon bthe beast bside, b7
bfish bon bthe bsouth bside, bor b5 bfish bon bthe bwest bside. bEverything belse bheld
bconstant, bRemus' bopportunity bcost bof bfishing bthe beast bside bof bthe blake bis b_____
bfish. bWhat bwould bbe bthe banswer bif beast=west? bWhat babout bif beast=south? b-
bcorrect banswers✔✔7; b7; b5
Suppose bRemus bdecides bto bgo bfishing bat bLake bPescaccio bon bhis bday boff bfrom
bwork, bbut bhe bfaces ba bchoice: bhe bcan bfish bthe beast, bsouth, bor bwest bside bof bthe
blake. bHis bexpected bcatch bfor bthe bday bis bas bfollows: b3 bfish bon bthe beast bside, b7
bfish bon bthe bsouth bside, bor b5 bfish bon bthe bwest bside. bSuppose bfurther bthat bRemus
bchose bto bfish bthe beast bside bof bthe blake. bWas bRemus' bdecision brational? b- bcorrect
banswers✔✔no
Suppose brational bdecision-maker bHarry bfaces ba bchoice: bhe bcan beither bsee bZoe
bBoekbinder bor bBeth bPatterson bin bconcert. bSuppose bfurther bthat btickets bto bsee
bZoe bare b$10 beach bwhile btickets bto bsee bBeth bare b$15 beach band bHarry bhas bnot
byet bobtained ba bticket bto bsee beither bperformer. bWhat bis bHarry's bbenefit bfrom
bseeing bBeth bin bconcert? b- bcorrect banswers✔✔the bexperience bof bseeing bbeth blive
Suppose brational bdecision-maker bHarry bfaces ba bchoice: bhe bcan beither bsee bZoe
bBoekbinder bor bBeth bPatterson bin bconcert. bSuppose bfurther bthat btickets bto bsee
bZoe bare b$10 beach bwhile btickets bto bsee bBeth bare b$15 beach band bHarry bhas bnot
byet bobtained ba bticket bto bsee beither bperformer. bWhat bis bHarry's bbenefit bfrom
bseeing bZoe bin bconcert? b- bcorrect banswers✔✔the bexperience bof bseeing bzoe blive b+
b$5
Suppose brational bdecision-maker bHarry bfaces ba bchoice: bhe bcan beither bsee bZoe
bBoekbinder bor bBeth bPatterson bin bconcert. bSuppose bfurther bthat btickets bto bsee
bZoe bare b$10 beach bwhile btickets bto bsee bBeth bare b$15 beach band bHarry bhas bnot
byet bobtained ba bticket bto bsee beither bperformer. bWhat bis bHary's bopportunity bcost bof
bseeing bBeth? b- bcorrect banswers✔✔Getting bto bsee bZoe blive b+ b5 bbucks
, Suppose brational bdecision-maker bHarry bfaces ba bchoice: bhe bcan beither bsee bZoe
bBoekbinder bor bBeth bPatterson bin bconcert. bSuppose bfurther bthat btickets bto bsee
bZoe bare b$10 beach bwhile btickets bto bsee bBeth bare b$15 beach band bHarry bhas bnot
byet bobtained ba bticket bto bsee beither bperformer. bWhat bis bHarry's bopportunity bcost
bof bseeing bZoe? b- bcorrect banswers✔✔getting bto bsee bBeth blive
Suppose brational bdecision-maker bHarry bfaces ba bchoice: bhe bcan beither bsee bZoe
bBoekbinder bor bBeth bPatterson bin bconcert. bSuppose bfurther bthat btickets bto bsee
bZoe bare b$10 beach bwhile btickets bto bsee bBeth bare b$15 beach band bHarry bhas bnot
byet bobtained ba bticket bto bsee beither bperformer. bWhat bis bHarry's bsunk bcost bin
bdeciding bwhich bconcert bto battend? b- bcorrect banswers✔✔$10
Suppose ba blocal bretailer bis brunning bthe bfollowing bsale bon b12-packs bof bPepsi
bproducts: b$5 beach bor bthree bfor b$12. bWhat bis bthe bmarginal bcost bof bthe bfirst b12-
pack bof bPepsi bpurchased? bsecond? bthird? b- bcorrect banswers✔✔$5; b$5; b$2
Suppose ba bparking bgarage bhas bthe bfollowing bpricing bschedule: b0-2 bHours, b$5; b2-4
bHours, b$10; b4-8 bHours, b$15. bWhat bis bthe bmarginal bcost bof bthe bfirst bhour bof
bparking? bSecond? bThird-6th? b- bcorrect banswers✔✔$5; b$0; b$5; b$0; b$5; b$0
production bpossibilities bfrontier b(PPF) b- bcorrect banswers✔✔shows ball bmaximum
boutput bpossibilities bfor ba bgiven binput; bany bpoint bbelow bthe bPPF bis binefficient; bany
bpoint bon bthe bPPF bis befficient; bany bpoint babove bis bunattainable b(except bthrough
btrade)
if ba bpoint bis boutside bof bthe bPPF, bis bit befficient bor binefficient? b- bcorrect
banswers✔✔neither, bit's bunattainable
Answer btrue bor bfalse bto bthe bfollowing bstatement. bEngaging bin btrade bwith bother
bcountries ballows bthe bUnited bStates bto bconsume boutside bof bits bproduction
bpossibilities bfrontier. b- bcorrect banswers✔✔true
Albania bis bsaid bto bhave bthe babsolute badvantage bover bBulgaria bin bproducing ba
bgood bif: b- bcorrect banswers✔✔Albania bcan bproduce bmore bof bthe bgood bper bworker
bhour bthan bBulgaria bcan
absolute badvantage b- bcorrect banswers✔✔higher bproductivity bin bmaking bsomething
comparative badvantage b- bcorrect banswers✔✔lower bopportunity bcost; bbetter bsuited
bto bthe bproduction bof bone bgood bthan bto bthe bproduction bof banother bgood
specialization b- bcorrect banswers✔✔producing bgoods bthat bhave bcomparative
badvantage b(lower bopportunity bcost)
Correct And Verified Answers
microeconomics b- bcorrect banswers✔✔-issues bthat baffect bindividuals, bfirms, bspecific
bindustries, bspecific bjobs, bspecific bmarkets, betc. b
-ex: bdentist, bsales bmanager, bbeef bmarket, bcoffee bmarket
macroeconomics b- bcorrect banswers✔✔-issues bthat baffect bthe bwhole beconomy
-ex: binflation b--> baffects ball bprices/markets, bunemployment brates b--> baffects ball
bjobs, bgrowth b--> baffects bwell bbeing bof ball bindividuals
reminder: beconomic bgrowth=macroeconomic
"How bhas bemployment bin bthe bUnited bStates bchanged bover bthe blast b12 bmonths?"
bis ban bexample bof ba b_____ bquestion. b- bcorrect banswers✔✔macroeconomic
"Eli bLilly bis bshedding b3,500 bworkers—over b8% bof bits bglobal bstaff—and bclosing
bseveral bfacilities bin ba bbid bto bcut b$500 bmillion bin bannual bcosts. bThe bAmerican
bdrugmaker's brevenues bwere bup b8% bin bthe bfirst bhalf bof b2017, bat bmore bthan b$11
bbillion. bBut btougher btimes blie bahead bas bpatents bon bblood-thinning band bADHD
btreatments bexpire." bThis bquote bis ban bexample bof ba bnews bitem babout ba b_____
bissue. b- bcorrect banswers✔✔microeconomic b(only btalking babout bone bcompany, beli
blilly)
"The bEuropean bCentral bBank bsaid bthe beuro bzone bgrew bfaster bthan bexpected bin
bthe bfirst bhalf bof bthe byear, band braised bits bgrowth bforecast bfor bthe bbloc bfor b2017,
bto b2.2%—the bfastest bpace bin bten byears. bFrance's bpresident, bEmmanuel bMacron,
bthrew bhis bweight bbehind ba bGerman bproposal bfor ba bEuropean bMonetary bFund bto
bdampen beuro-zone beconomic bshocks." bThis bis ban bexample bof ba bnews bitem babout
ba b_____ bissue. b- bcorrect banswers✔✔macroeconomic
benefit b- bcorrect banswers✔✔what bis brecieved
opportunity bcost b- bcorrect banswers✔✔what bis bgiven bup; bbenefit bfrom bthe bbest
balternative bnot bchosen
rationality b- bcorrect banswers✔✔do bsomething bif bthe bbenefit bis bat bleast bas bgreat
bas bthe bopportunity bcost bat bthe btime bof bthe bdecision; bbenefit b≥ bOpportunity bCost
,sunk bcost b- bcorrect banswers✔✔a bmonetary bexpenditure bincurred bregardless bof bthe
boption bchosen; birrelevant bto bthe bdecision
marginal bcost b- bcorrect banswers✔✔the bextra bcost bof bdoing bone bmore bunit bof
bsomething
Suppose bRemus bdecides bto bgo bfishing bat bLake bPescaccio bon bhis bday boff bfrom
bwork, bbut bhe bfaces ba bchoice: bhe bcan bfish bthe beast, bsouth, bor bwest bside bof bthe
blake. bHis bexpected bcatch bfor bthe bday bis bas bfollows: b3 bfish bon bthe beast bside, b7
bfish bon bthe bsouth bside, bor b5 bfish bon bthe bwest bside. bEverything belse bheld
bconstant, bRemus' bbenefit bof bfishing bthe beast bside bof bthe blake bis b_____ bfish. b-
bcorrect banswers✔✔3
Suppose bRemus bdecides bto bgo bfishing bat bLake bPescaccio bon bhis bday boff bfrom
bwork, bbut bhe bfaces ba bchoice: bhe bcan bfish bthe beast, bsouth, bor bwest bside bof bthe
blake. bHis bexpected bcatch bfor bthe bday bis bas bfollows: b3 bfish bon bthe beast bside, b7
bfish bon bthe bsouth bside, bor b5 bfish bon bthe bwest bside. bEverything belse bheld
bconstant, bRemus' bopportunity bcost bof bfishing bthe beast bside bof bthe blake bis b_____
bfish. bWhat bwould bbe bthe banswer bif beast=west? bWhat babout bif beast=south? b-
bcorrect banswers✔✔7; b7; b5
Suppose bRemus bdecides bto bgo bfishing bat bLake bPescaccio bon bhis bday boff bfrom
bwork, bbut bhe bfaces ba bchoice: bhe bcan bfish bthe beast, bsouth, bor bwest bside bof bthe
blake. bHis bexpected bcatch bfor bthe bday bis bas bfollows: b3 bfish bon bthe beast bside, b7
bfish bon bthe bsouth bside, bor b5 bfish bon bthe bwest bside. bSuppose bfurther bthat bRemus
bchose bto bfish bthe beast bside bof bthe blake. bWas bRemus' bdecision brational? b- bcorrect
banswers✔✔no
Suppose brational bdecision-maker bHarry bfaces ba bchoice: bhe bcan beither bsee bZoe
bBoekbinder bor bBeth bPatterson bin bconcert. bSuppose bfurther bthat btickets bto bsee
bZoe bare b$10 beach bwhile btickets bto bsee bBeth bare b$15 beach band bHarry bhas bnot
byet bobtained ba bticket bto bsee beither bperformer. bWhat bis bHarry's bbenefit bfrom
bseeing bBeth bin bconcert? b- bcorrect banswers✔✔the bexperience bof bseeing bbeth blive
Suppose brational bdecision-maker bHarry bfaces ba bchoice: bhe bcan beither bsee bZoe
bBoekbinder bor bBeth bPatterson bin bconcert. bSuppose bfurther bthat btickets bto bsee
bZoe bare b$10 beach bwhile btickets bto bsee bBeth bare b$15 beach band bHarry bhas bnot
byet bobtained ba bticket bto bsee beither bperformer. bWhat bis bHarry's bbenefit bfrom
bseeing bZoe bin bconcert? b- bcorrect banswers✔✔the bexperience bof bseeing bzoe blive b+
b$5
Suppose brational bdecision-maker bHarry bfaces ba bchoice: bhe bcan beither bsee bZoe
bBoekbinder bor bBeth bPatterson bin bconcert. bSuppose bfurther bthat btickets bto bsee
bZoe bare b$10 beach bwhile btickets bto bsee bBeth bare b$15 beach band bHarry bhas bnot
byet bobtained ba bticket bto bsee beither bperformer. bWhat bis bHary's bopportunity bcost bof
bseeing bBeth? b- bcorrect banswers✔✔Getting bto bsee bZoe blive b+ b5 bbucks
, Suppose brational bdecision-maker bHarry bfaces ba bchoice: bhe bcan beither bsee bZoe
bBoekbinder bor bBeth bPatterson bin bconcert. bSuppose bfurther bthat btickets bto bsee
bZoe bare b$10 beach bwhile btickets bto bsee bBeth bare b$15 beach band bHarry bhas bnot
byet bobtained ba bticket bto bsee beither bperformer. bWhat bis bHarry's bopportunity bcost
bof bseeing bZoe? b- bcorrect banswers✔✔getting bto bsee bBeth blive
Suppose brational bdecision-maker bHarry bfaces ba bchoice: bhe bcan beither bsee bZoe
bBoekbinder bor bBeth bPatterson bin bconcert. bSuppose bfurther bthat btickets bto bsee
bZoe bare b$10 beach bwhile btickets bto bsee bBeth bare b$15 beach band bHarry bhas bnot
byet bobtained ba bticket bto bsee beither bperformer. bWhat bis bHarry's bsunk bcost bin
bdeciding bwhich bconcert bto battend? b- bcorrect banswers✔✔$10
Suppose ba blocal bretailer bis brunning bthe bfollowing bsale bon b12-packs bof bPepsi
bproducts: b$5 beach bor bthree bfor b$12. bWhat bis bthe bmarginal bcost bof bthe bfirst b12-
pack bof bPepsi bpurchased? bsecond? bthird? b- bcorrect banswers✔✔$5; b$5; b$2
Suppose ba bparking bgarage bhas bthe bfollowing bpricing bschedule: b0-2 bHours, b$5; b2-4
bHours, b$10; b4-8 bHours, b$15. bWhat bis bthe bmarginal bcost bof bthe bfirst bhour bof
bparking? bSecond? bThird-6th? b- bcorrect banswers✔✔$5; b$0; b$5; b$0; b$5; b$0
production bpossibilities bfrontier b(PPF) b- bcorrect banswers✔✔shows ball bmaximum
boutput bpossibilities bfor ba bgiven binput; bany bpoint bbelow bthe bPPF bis binefficient; bany
bpoint bon bthe bPPF bis befficient; bany bpoint babove bis bunattainable b(except bthrough
btrade)
if ba bpoint bis boutside bof bthe bPPF, bis bit befficient bor binefficient? b- bcorrect
banswers✔✔neither, bit's bunattainable
Answer btrue bor bfalse bto bthe bfollowing bstatement. bEngaging bin btrade bwith bother
bcountries ballows bthe bUnited bStates bto bconsume boutside bof bits bproduction
bpossibilities bfrontier. b- bcorrect banswers✔✔true
Albania bis bsaid bto bhave bthe babsolute badvantage bover bBulgaria bin bproducing ba
bgood bif: b- bcorrect banswers✔✔Albania bcan bproduce bmore bof bthe bgood bper bworker
bhour bthan bBulgaria bcan
absolute badvantage b- bcorrect banswers✔✔higher bproductivity bin bmaking bsomething
comparative badvantage b- bcorrect banswers✔✔lower bopportunity bcost; bbetter bsuited
bto bthe bproduction bof bone bgood bthan bto bthe bproduction bof banother bgood
specialization b- bcorrect banswers✔✔producing bgoods bthat bhave bcomparative
badvantage b(lower bopportunity bcost)
