ECON 2030 – EXAM ONE 1 If an economy produces on its production possibility curve, it is using its resources: B: efficiently 2 Suppose you are earning $15 an hour at a bookstore. At that wage you have decided to work 30 hours a week. If your wage were to increase $16 an hour, using the economic decision rule you will most likely choose to work: D: more hours because the opportunity cost of leisure has risen. 3 If the government poses an excise tax on cars equal to $5000 per automobile, the supply of automobiles will shift to the: B: left and the price of automobiles will increase by an unknown amount. 4 This production possibility table shows marginal opportunity costs that are: Bolts Nuts 1000 80 10 60 20 40 30 20 400 50 B: constant 5 Rent control makes apartments: D: hard to find 6 Suppose the equilibrium price of oranges is $0.79, but government takes steps to prevent the price from exceeding $0.60. The likely result will be a: D; shortage of oranges as the price ceiling keeps the market from reaching equilibrium
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