LSU ECON 2030 Final Test Questions with Correct Answers Latest Update 2025 Already Passed
Suppose that mac and cheese is an inferior good and national income is decreasing, Everything else held
constant, the equilibrium price of mac and cheese will _____ and the equilibrium quantity transacted
will _____.
a) Decrease; decrease
b) Decrease; increase
c) Increase; ambiguous
d) Increase; decrease
e) Increase; increase - Answers e) Increase; increase
Suppose the price of pumpkin increase. Everything else held constant, this will cause _____ in the
demand for pumpkins.
a) A decrease
b) An increase
c) No change - Answers c) No change
Change in price is movement along the curve, so quantity demanded goes down but demand stays the
same.
Suppose a customer offered Tony, a rational painter, $500 for his painting 'Banana Head' and he sold it.
It can be concluded with certainty that Tony's reservation price for his painting was _____ $500.
a) Less than
b) Greater than
c) Equal to
d) Greater than or equal to
e) Less than or equal to - Answers e) Less than or equal to
,Suppose that worker productivity _____ in the bubble bath industry. Everything else held constant, the
equilibrium price of bubble bath liquid will _____ and the equilibrium quantity transacted will decrease.
a) increases; increase
b) Increases; decrease
c) Decreases; increase
d) Decreases; decrease - Answers c) Decreases; increase
Which of the following concepts is depicted by the numerical slope of the production possibilities
frontier (PPF) at a particular point on the PPF?
a) The opportunity cost of the good measured on the horizontal axis.
b) The degree of attainability of the combination of goods.
c) The rate of economic growth in the country.
d) The degree of efficiency of the combination of goods. - Answers a) The opportunity cost of the good
measured on the horizontal axis.
Canada: 25 coal/hr, 100 potatoes/hr
Wales: 20 coal/hr, 60 potatoes/hr
In the situation above, the move from trade to autarky will benefit coal consumers in which country?
a) Neither Canada nor Wales.
b) Both Canada and Wales
c) Only Canada.
d) Only Wales. - Answers d) Only Wales.
Canada: 25 coal/hr, 100 potatoes/hr
Wales: 20 coal/hr, 60 potatoes/hr
,In the situation above, the move from trade to autarky will cause employment of Canadian farmers to
a) Remain unchanged.
b) Increase
c) Decrease - Answers c) Decrease
Suppose a store sells pairs of shoes for $30 each and is running a "buy one, and get one %50 off" sale.
Suppose further that you buy four pairs of shoes. The marginal cost of the third pair of shoes purchased
is
a) $15
b) $30
c) $45
d) $75
e) $90 - Answers b) $30
The price of goods that are substitutes in consumption move
a) Opposite of one another
b) Together - Answers b) Together
Suppose that apples are the main input in the production of apple cider. Suppose further that the wage
paid to apple harvesters decreases.
In the situation above, the equilibrium price of apple cider will _____ and the equilibrium quantity of
apple cider transacted will _____, everything else held constant.
a) Decrease; increase
b) Decrease; decrease
c) Increase; increase
, d) Increase; decrease - Answers a) Decrease; increase
Suppose that apples are the main input in the production of apple cider. Suppose further that the wage
paid to apple harvesters decreases.
In the situation above, the wage change will cause the _____ apples to _____.
a) Demand for; decrease
b) Supply of; increase
c) Demand for; increase
d) Supply of; decrease - Answers b) Supply of; increase
Mark: 16 cookies/hr, 4 brownies/hr
Howie: 14 cookies/hr, 2 brownies/hr
In the situation above, ____ has the absolute advantage in baking cookies and _____ has the
comparative advantage in baking brownies.
a) Howie; Mark
b) Mark; Howie
c) Howie; Howie
d) Mark; Mark - Answers d) Mark; Mark
Mark: 16 cookies/hr, 4 brownies/hr
Howie: 14 cookies/hr, 2 brownies/hr
In the situation above, Howie's opportunity cost of baking one cookie is _____ brownies.
a) 1/7
Suppose that mac and cheese is an inferior good and national income is decreasing, Everything else held
constant, the equilibrium price of mac and cheese will _____ and the equilibrium quantity transacted
will _____.
a) Decrease; decrease
b) Decrease; increase
c) Increase; ambiguous
d) Increase; decrease
e) Increase; increase - Answers e) Increase; increase
Suppose the price of pumpkin increase. Everything else held constant, this will cause _____ in the
demand for pumpkins.
a) A decrease
b) An increase
c) No change - Answers c) No change
Change in price is movement along the curve, so quantity demanded goes down but demand stays the
same.
Suppose a customer offered Tony, a rational painter, $500 for his painting 'Banana Head' and he sold it.
It can be concluded with certainty that Tony's reservation price for his painting was _____ $500.
a) Less than
b) Greater than
c) Equal to
d) Greater than or equal to
e) Less than or equal to - Answers e) Less than or equal to
,Suppose that worker productivity _____ in the bubble bath industry. Everything else held constant, the
equilibrium price of bubble bath liquid will _____ and the equilibrium quantity transacted will decrease.
a) increases; increase
b) Increases; decrease
c) Decreases; increase
d) Decreases; decrease - Answers c) Decreases; increase
Which of the following concepts is depicted by the numerical slope of the production possibilities
frontier (PPF) at a particular point on the PPF?
a) The opportunity cost of the good measured on the horizontal axis.
b) The degree of attainability of the combination of goods.
c) The rate of economic growth in the country.
d) The degree of efficiency of the combination of goods. - Answers a) The opportunity cost of the good
measured on the horizontal axis.
Canada: 25 coal/hr, 100 potatoes/hr
Wales: 20 coal/hr, 60 potatoes/hr
In the situation above, the move from trade to autarky will benefit coal consumers in which country?
a) Neither Canada nor Wales.
b) Both Canada and Wales
c) Only Canada.
d) Only Wales. - Answers d) Only Wales.
Canada: 25 coal/hr, 100 potatoes/hr
Wales: 20 coal/hr, 60 potatoes/hr
,In the situation above, the move from trade to autarky will cause employment of Canadian farmers to
a) Remain unchanged.
b) Increase
c) Decrease - Answers c) Decrease
Suppose a store sells pairs of shoes for $30 each and is running a "buy one, and get one %50 off" sale.
Suppose further that you buy four pairs of shoes. The marginal cost of the third pair of shoes purchased
is
a) $15
b) $30
c) $45
d) $75
e) $90 - Answers b) $30
The price of goods that are substitutes in consumption move
a) Opposite of one another
b) Together - Answers b) Together
Suppose that apples are the main input in the production of apple cider. Suppose further that the wage
paid to apple harvesters decreases.
In the situation above, the equilibrium price of apple cider will _____ and the equilibrium quantity of
apple cider transacted will _____, everything else held constant.
a) Decrease; increase
b) Decrease; decrease
c) Increase; increase
, d) Increase; decrease - Answers a) Decrease; increase
Suppose that apples are the main input in the production of apple cider. Suppose further that the wage
paid to apple harvesters decreases.
In the situation above, the wage change will cause the _____ apples to _____.
a) Demand for; decrease
b) Supply of; increase
c) Demand for; increase
d) Supply of; decrease - Answers b) Supply of; increase
Mark: 16 cookies/hr, 4 brownies/hr
Howie: 14 cookies/hr, 2 brownies/hr
In the situation above, ____ has the absolute advantage in baking cookies and _____ has the
comparative advantage in baking brownies.
a) Howie; Mark
b) Mark; Howie
c) Howie; Howie
d) Mark; Mark - Answers d) Mark; Mark
Mark: 16 cookies/hr, 4 brownies/hr
Howie: 14 cookies/hr, 2 brownies/hr
In the situation above, Howie's opportunity cost of baking one cookie is _____ brownies.
a) 1/7
