BSNS 113 EXAM QUESTIONS WITH CORRECT ANSWERS

BSNS 113 EXAM QUESTIONS WITH CORRECT
ANSWERS

positive |economics |- |CORRECT |ANSWER✔✔-how |systems |work



normative |economics |- |CORRECT |ANSWER✔✔-about |change |'should'



shift |PPF |out |- |CORRECT |ANSWER✔✔-resources

technology



3 |economic |questions |- |CORRECT |ANSWER✔✔-what

how |

whom



resource |heterogeneity |- |CORRECT |ANSWER✔✔-resources |vary |in |productive |characteristics, |
increase |production |we |have |to |move |resources |less |well |suited



Pros |of |terms |of |trade |- |CORRECT |ANSWER✔✔-open |international |markets

prevents |monopolies

increases |efficiency

greater |specialisation



Cons |terms |of |trade |- |CORRECT |ANSWER✔✔-can |strand |assets, |cant |get |jobs |in |new |industry

, substitution |effect |- |CORRECT |ANSWER✔✔-prices |decrease, |consumers |substitute |to



income |effect |- |CORRECT |ANSWER✔✔-prices |increase, |decrease |in |money |to |spend, |cant |
afford |as |much



shift |supply |curve |- |CORRECT |ANSWER✔✔-costs |of |production

technology

expectations

number |of |sellers



mid |point |method |- |CORRECT |ANSWER✔✔-(change |in |Q/average |Q) |/ |(change |in |P/average |P)



elasticity |at |a |point |- |CORRECT |ANSWER✔✔-P/Q |x |1/slope



elastic |= |Ped |> |1

inelastic |= |Ped |< |1



close |substitutes |elasticity

luxuries |elasticity |- |CORRECT |ANSWER✔✔-high |- |can |switch |demand |easily

high |- |can |forego |purchases



cross |price |elasticity |of |demand

if |+

if |- |- |CORRECT |ANSWER✔✔-% |change |of |Qd |of |good |1 |/ |% |change |of |Qd |of |good |2

+ |= |substitute

- |= |compliment