ECON 2030 – OVER 160 2026 UPDATED SAMPLE TEST QUESTIONS AND
ANSWERS ACTUAL EXAM 100% (ECONOMIS AND ECON REASONING) Louisiana
State University
Question
To engage in economic reasoning, one must compare:
A) total cost and total benefit.
B) marginal cost, sunk cost, and total benefit.
C) sunk cost and marginal cost.
D) marginal cost and marginal benefit.
Use Space or
to flip the card.
Question
The "invisible hand" is the price mechanism that guides people's
actions in the market.
Question
Only marginal costs, not sunk costs, affect economic decisions if
individuals are rational.
Question
Say a pill existed that made people selfless. After taking it
they were only interested in others, not themselves. Under
the coordination definition of economics:
A) no economic problem would exist.
B) there still would be an economic problem.
C) there would be a political problem but not an economic problem.
D) there would be a social problem but not an economic problem.
Question
If allocating dorm rooms changes from allocation by lottery
to allocation by the market:
A) it becomes an economic problem.
B) it becomes a political problem but not an economic problem.
C) it becomes a social problem but not an economic problem.
D) the allocation problem is still an economic problem.
Question
Alexandra has determined that studying an hour for her
economics quiz will improve her grade on the quiz from a 75
to a 100. She also determines that this improvement is
worth $20. To study for an hour for her economics quiz,
,however, she will have to work one fewer hour at her part-
time job. Alexandra should:
A) study for the quiz as long as her hourly wage rate is less than $20.
B) study for the quiz as long as her hourly wage rate is more than
$20.
C) study for the quiz only if her hourly wage rate is exactly $20.
D) not study for the quiz because earning a higher grade cannot
have a dollar value.
Question
The quantity of goods and services available to society:
A) is fixed.
B) depends on human action.
C) is not of economic importance.
D) will always grow to meet individuals' wants and desires.
Question
The opportunity cost of undertaking an activity includes any sunk
cost.
Question
People can reasonably expect that an economic system will
decide all of the following except:
A) what goods to produce.
B) how to produce the goods.
C) how to assign initial property rights.
D) for whom to produce the goods.
Question
The economic decision rule is to undertake an action only when the
marginal benefits of that action are greater than its total costs.
Question
Social and political forces affect the way in which the invisible hand
works.
Question
Macroeconomics is the study of how individual choices are affected
by economic forces.
Question
The answers to an economy's three central economic problems are
determined by the interaction of three forces: economic forces,
political forces, and social forces.
Question
According to the text, economics is the study of how:
,A) governments allocate resources in the face of constraints.
B)government policies can be used to meet individuals' wants and
desires.
C) human beings coordinate their wants and desires.
D) scarce resources are allocated between capitalists and workers.
Question
Economic systems:
A) can eliminate scarcity.
B) address the questions what is produced, how it is produced, and
for whom it is produced.
C) provide all the goods people want and desire.
D) provide equal distribution of well-being among its participants.
Question
Which of the following is not one of the three central
coordination problems of the economy given in the book?
A) What
B)Whether
C)For whom
D)How
Question
Deciding what the distribution of income should be is an example of
normative economics.
Question
Scarcity exists because:
A)individuals cannot solve the three central coordination problems.
B)governments cannot solve the three central coordination
problems.
C) the supply of goods is always less than the demand.
D) new wants continue to develop and willingness to meet them is
limited.
Question
Scarcity exists because economies cannot produce enough to meet
the perceived desires of all individuals.
Question
Dorm rooms usually are not allocated by markets. Allocating
dorm rooms is:
A) not an economic problem.
, B) an economic problem.
C) not affected by economic forces.
D)determined by prices.
Question
The table below shows how the marginal benefit of pizza
dinners varies for Luigi with the number consumed per
month.
Dinners per manth Marginal benefit per dinner 1$4.002$3.003$2.004$
1.00 Dinners per manth1234 Marginal benefit per dinner $4.00$3.00$
2.00$1.00 Suppose the price per dinner is $4.99 and
accurately reflects the marginal cost of the dinners to Luigi.
Assuming that Luigi is rational, he will:
A) not consume any pizza dinners this month.
B) consume one pizza dinner this month.
C) consume two pizza dinners this month.
D) consume three pizza dinners this month.
Question
Mary buys cell-phone services from a company that charges
$30 per month. For that $30 she is allowed 600 minutes of
free calls and then pays 10 cents per minute for any calls
above 600 minutes. Mary has used 600 minutes this month
so far. What is her marginal cost per minute of making
additional calls?
A) 25 cents
B) 10 cents
C) 5 cents
D)$0
Question
Sunk costs:
A) are an essential part of economic decision making.
B) are irrelevant to economic decision making.
C) should be considered, but only when marginal cost is less than
marginal benefit.
D) should be considered only when there is no information about
marginal cost and marginal benefit.
Question
The marginal benefit from consuming another unit of a good:
ANSWERS ACTUAL EXAM 100% (ECONOMIS AND ECON REASONING) Louisiana
State University
Question
To engage in economic reasoning, one must compare:
A) total cost and total benefit.
B) marginal cost, sunk cost, and total benefit.
C) sunk cost and marginal cost.
D) marginal cost and marginal benefit.
Use Space or
to flip the card.
Question
The "invisible hand" is the price mechanism that guides people's
actions in the market.
Question
Only marginal costs, not sunk costs, affect economic decisions if
individuals are rational.
Question
Say a pill existed that made people selfless. After taking it
they were only interested in others, not themselves. Under
the coordination definition of economics:
A) no economic problem would exist.
B) there still would be an economic problem.
C) there would be a political problem but not an economic problem.
D) there would be a social problem but not an economic problem.
Question
If allocating dorm rooms changes from allocation by lottery
to allocation by the market:
A) it becomes an economic problem.
B) it becomes a political problem but not an economic problem.
C) it becomes a social problem but not an economic problem.
D) the allocation problem is still an economic problem.
Question
Alexandra has determined that studying an hour for her
economics quiz will improve her grade on the quiz from a 75
to a 100. She also determines that this improvement is
worth $20. To study for an hour for her economics quiz,
,however, she will have to work one fewer hour at her part-
time job. Alexandra should:
A) study for the quiz as long as her hourly wage rate is less than $20.
B) study for the quiz as long as her hourly wage rate is more than
$20.
C) study for the quiz only if her hourly wage rate is exactly $20.
D) not study for the quiz because earning a higher grade cannot
have a dollar value.
Question
The quantity of goods and services available to society:
A) is fixed.
B) depends on human action.
C) is not of economic importance.
D) will always grow to meet individuals' wants and desires.
Question
The opportunity cost of undertaking an activity includes any sunk
cost.
Question
People can reasonably expect that an economic system will
decide all of the following except:
A) what goods to produce.
B) how to produce the goods.
C) how to assign initial property rights.
D) for whom to produce the goods.
Question
The economic decision rule is to undertake an action only when the
marginal benefits of that action are greater than its total costs.
Question
Social and political forces affect the way in which the invisible hand
works.
Question
Macroeconomics is the study of how individual choices are affected
by economic forces.
Question
The answers to an economy's three central economic problems are
determined by the interaction of three forces: economic forces,
political forces, and social forces.
Question
According to the text, economics is the study of how:
,A) governments allocate resources in the face of constraints.
B)government policies can be used to meet individuals' wants and
desires.
C) human beings coordinate their wants and desires.
D) scarce resources are allocated between capitalists and workers.
Question
Economic systems:
A) can eliminate scarcity.
B) address the questions what is produced, how it is produced, and
for whom it is produced.
C) provide all the goods people want and desire.
D) provide equal distribution of well-being among its participants.
Question
Which of the following is not one of the three central
coordination problems of the economy given in the book?
A) What
B)Whether
C)For whom
D)How
Question
Deciding what the distribution of income should be is an example of
normative economics.
Question
Scarcity exists because:
A)individuals cannot solve the three central coordination problems.
B)governments cannot solve the three central coordination
problems.
C) the supply of goods is always less than the demand.
D) new wants continue to develop and willingness to meet them is
limited.
Question
Scarcity exists because economies cannot produce enough to meet
the perceived desires of all individuals.
Question
Dorm rooms usually are not allocated by markets. Allocating
dorm rooms is:
A) not an economic problem.
, B) an economic problem.
C) not affected by economic forces.
D)determined by prices.
Question
The table below shows how the marginal benefit of pizza
dinners varies for Luigi with the number consumed per
month.
Dinners per manth Marginal benefit per dinner 1$4.002$3.003$2.004$
1.00 Dinners per manth1234 Marginal benefit per dinner $4.00$3.00$
2.00$1.00 Suppose the price per dinner is $4.99 and
accurately reflects the marginal cost of the dinners to Luigi.
Assuming that Luigi is rational, he will:
A) not consume any pizza dinners this month.
B) consume one pizza dinner this month.
C) consume two pizza dinners this month.
D) consume three pizza dinners this month.
Question
Mary buys cell-phone services from a company that charges
$30 per month. For that $30 she is allowed 600 minutes of
free calls and then pays 10 cents per minute for any calls
above 600 minutes. Mary has used 600 minutes this month
so far. What is her marginal cost per minute of making
additional calls?
A) 25 cents
B) 10 cents
C) 5 cents
D)$0
Question
Sunk costs:
A) are an essential part of economic decision making.
B) are irrelevant to economic decision making.
C) should be considered, but only when marginal cost is less than
marginal benefit.
D) should be considered only when there is no information about
marginal cost and marginal benefit.
Question
The marginal benefit from consuming another unit of a good:
