ECON 2030 – EXAM ONE
If an economy produces on its production possibility curve, it is using its resources:
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.
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.
This production possibility table shows marginal opportunity costs that are:
Rent control makes apartments:
D: hard to find
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