BSNS 113 EXAM QUESTIONS WITH CORRECT
ANSWERS
QUIZ |#1: |Which |of |the |following |is |most |likely |a |macroeconomic |topic?
a. |who |gains |and |who |loses |from |international |trade
b. |the |role |of |the |Reserve |Bank |in |controlling |inflation |
c. |what |the |"optimal" |amount |of |pollution |is |
d. |how |taxes |affect |people's |behavior |- |CORRECT |ANSWER✔✔-b. |the |role |of |the |Reserve |Bank |
in |controlling |inflation
QUIZ |#1: |Consider |the |following |two |statements:
i. |Humans |tend |to |have |effectively |unlimited |wants |for |goods |and |services. |
ii. |Humans |should |limit |their |consumption |for |the |sake |of |the |environment.
Which |of |the |following |is |true?
a. |(i) |is |a |positive |statement |and |(ii) |is |a |normative |statement |
b. |both |statements |are |normative |
c. |both |statements |are |positive |
d. |(i) |is |a |normative |statement |and |(ii) |is |a |positive |statement |- |CORRECT |ANSWER✔✔-a. |(i) |is |
a |positive |statement |and |(ii) |is |a |normative |statement
QUIZ |#1: |Suppose |that |to |sit |an |exam |you |had |to |take |three |hours |off |from |your |tele-
marketing |job |that |you |do |from |home. |The |job |pays |$30 |per |hour. |As |well, |because |you |live |
on |the |other |side |of |town, |you |had |to |pay |$10 |in |total |for |buses |to |get |to |the |exam |and |back. |
,You |had |to |bring |a |pencil, |which |you |already |owned. |What |is |the |opportunity |cost |to |you |of |
sitting |this |exam?
a. |nothing |at |all, |if |you |enjoy |the |exam |
b. |just |$10 |for |the |buses
c. |$100 |plus |a |few |cents |for |the |"wear-and-tear" |to |your |pencil |
d. |$100 |plus |the |total |cost |of |the |pencil |- |CORRECT |ANSWER✔✔-c. |$100 |plus |a |few |cents |for |
the |"wear-and-tear" |to |your |pencil
QUIZ |#1: |After |leaving |high |school, |Sandra |considered |three |options |for |what |to |do |next, |listed
|in |order |of |preference:
(1) |attend |Otago |University |
(2) |work |at |Speights |Brewery |in |Dunedin, |or |
(3) |attend |Auckland |University |
Sandra's |opportunity |cost |of |attending |Otago |University |is |the |____________
a. |net |benefit |she |would |have |received |from |attending |Auckland |University.
b. |direct |cost |of |attending |Otago |University |(fees, |books, |etc.).
c. |direct |cost |of |attending |Otago |University |(fees, |books, |etc.) |plus |the |income |and |work |
experience |the |could |have |earned |at |the |brewery. |
d. |direct |cost |of |attending |Otago |University |(fees, |books, |etc.) |plus |living |expenses |(food, |
clothing, |etc.) |plus |the |income |and |work |experience |she |could |have |earned |at |the |brewery. |- |
CORRECT |ANSWER✔✔-c. |direct |cost |of |attending |Otago |University |(fees, |books, |etc.) |plus |the |
income |and |work |experience |the |could |have |earned |at |the |brewery.
QUIZ |#1: |You |paid |$100 |for |a |ticket |(which |is |non-refundable) |to |go |to |a |concert |on |Saturday |
night. |Your |boss |calls |Saturday |afternoon |to |see |if |you're |willing |to |work |for |three |hours |that |
night. |She'll |pay |you |$20 |per |hour |instead |of |your |usual |$10. |What |is |your |opportunity |cost |if |
you |choose |to |go |to |the |concert?
, a. |$0
b. |$40
c. |$60 |
d. |$100 |- |CORRECT |ANSWER✔✔-c. |$60
QUIZ |#1: |Imagine |a |country |where |it |is |not |yet |compulsory |to |wear |seat |belts |in |cars. |If |
wearing |seat |belts |was |made |compulsory, |this |is |likely |to |___________
a. |reduce |the |number |of |traffic |accidents.
b. |lead |to |more |injuries |to |cyclists. |
c. |lead |to |fewer |injuries |to |cyclists. |
d. |increase |the |rate |of |injuries |to |drivers |per |accident. |- |CORRECT |ANSWER✔✔-b. |lead |to |
more |injuries |to |cyclists.
QUIZ |#1: |The |slope |of |the |production |possibilities |frontier |(PPF) |___________
a. |is |usually |constant |(i.e. |the |PPF |is |usually |a |straight |line) |
b. |should |be |interpreted |as |the |opportunity |cost |of |a |one |unit |increase |in |production |of |the |
good |measured |on |the |vertical |axis |
c. |should |be |interpreted |as |the |opportunity |cost |of |a |one |unit |increase |in |production |of |the |
good |measured |on |the |horizontal |axis |
d. |usually |decreases |(gets |flatter) |with |increases |in |production |of |the |good |on |the |horizontal |
axis |(i.e. |the |PPF |is |usually |bowed |inward). |- |CORRECT |ANSWER✔✔-c. |should |be |interpreted |
as |the |opportunity |cost |of |a |one |unit |increase |in |production |of |the |good |measured |on |the |
horizontal |axis
QUIZ |#1: |What |effect |did |the |destructive |earthquake |that |hit |Christchurch |in |2011 |likely |have |
on |New |Zealand's |PPF?
ANSWERS
QUIZ |#1: |Which |of |the |following |is |most |likely |a |macroeconomic |topic?
a. |who |gains |and |who |loses |from |international |trade
b. |the |role |of |the |Reserve |Bank |in |controlling |inflation |
c. |what |the |"optimal" |amount |of |pollution |is |
d. |how |taxes |affect |people's |behavior |- |CORRECT |ANSWER✔✔-b. |the |role |of |the |Reserve |Bank |
in |controlling |inflation
QUIZ |#1: |Consider |the |following |two |statements:
i. |Humans |tend |to |have |effectively |unlimited |wants |for |goods |and |services. |
ii. |Humans |should |limit |their |consumption |for |the |sake |of |the |environment.
Which |of |the |following |is |true?
a. |(i) |is |a |positive |statement |and |(ii) |is |a |normative |statement |
b. |both |statements |are |normative |
c. |both |statements |are |positive |
d. |(i) |is |a |normative |statement |and |(ii) |is |a |positive |statement |- |CORRECT |ANSWER✔✔-a. |(i) |is |
a |positive |statement |and |(ii) |is |a |normative |statement
QUIZ |#1: |Suppose |that |to |sit |an |exam |you |had |to |take |three |hours |off |from |your |tele-
marketing |job |that |you |do |from |home. |The |job |pays |$30 |per |hour. |As |well, |because |you |live |
on |the |other |side |of |town, |you |had |to |pay |$10 |in |total |for |buses |to |get |to |the |exam |and |back. |
,You |had |to |bring |a |pencil, |which |you |already |owned. |What |is |the |opportunity |cost |to |you |of |
sitting |this |exam?
a. |nothing |at |all, |if |you |enjoy |the |exam |
b. |just |$10 |for |the |buses
c. |$100 |plus |a |few |cents |for |the |"wear-and-tear" |to |your |pencil |
d. |$100 |plus |the |total |cost |of |the |pencil |- |CORRECT |ANSWER✔✔-c. |$100 |plus |a |few |cents |for |
the |"wear-and-tear" |to |your |pencil
QUIZ |#1: |After |leaving |high |school, |Sandra |considered |three |options |for |what |to |do |next, |listed
|in |order |of |preference:
(1) |attend |Otago |University |
(2) |work |at |Speights |Brewery |in |Dunedin, |or |
(3) |attend |Auckland |University |
Sandra's |opportunity |cost |of |attending |Otago |University |is |the |____________
a. |net |benefit |she |would |have |received |from |attending |Auckland |University.
b. |direct |cost |of |attending |Otago |University |(fees, |books, |etc.).
c. |direct |cost |of |attending |Otago |University |(fees, |books, |etc.) |plus |the |income |and |work |
experience |the |could |have |earned |at |the |brewery. |
d. |direct |cost |of |attending |Otago |University |(fees, |books, |etc.) |plus |living |expenses |(food, |
clothing, |etc.) |plus |the |income |and |work |experience |she |could |have |earned |at |the |brewery. |- |
CORRECT |ANSWER✔✔-c. |direct |cost |of |attending |Otago |University |(fees, |books, |etc.) |plus |the |
income |and |work |experience |the |could |have |earned |at |the |brewery.
QUIZ |#1: |You |paid |$100 |for |a |ticket |(which |is |non-refundable) |to |go |to |a |concert |on |Saturday |
night. |Your |boss |calls |Saturday |afternoon |to |see |if |you're |willing |to |work |for |three |hours |that |
night. |She'll |pay |you |$20 |per |hour |instead |of |your |usual |$10. |What |is |your |opportunity |cost |if |
you |choose |to |go |to |the |concert?
, a. |$0
b. |$40
c. |$60 |
d. |$100 |- |CORRECT |ANSWER✔✔-c. |$60
QUIZ |#1: |Imagine |a |country |where |it |is |not |yet |compulsory |to |wear |seat |belts |in |cars. |If |
wearing |seat |belts |was |made |compulsory, |this |is |likely |to |___________
a. |reduce |the |number |of |traffic |accidents.
b. |lead |to |more |injuries |to |cyclists. |
c. |lead |to |fewer |injuries |to |cyclists. |
d. |increase |the |rate |of |injuries |to |drivers |per |accident. |- |CORRECT |ANSWER✔✔-b. |lead |to |
more |injuries |to |cyclists.
QUIZ |#1: |The |slope |of |the |production |possibilities |frontier |(PPF) |___________
a. |is |usually |constant |(i.e. |the |PPF |is |usually |a |straight |line) |
b. |should |be |interpreted |as |the |opportunity |cost |of |a |one |unit |increase |in |production |of |the |
good |measured |on |the |vertical |axis |
c. |should |be |interpreted |as |the |opportunity |cost |of |a |one |unit |increase |in |production |of |the |
good |measured |on |the |horizontal |axis |
d. |usually |decreases |(gets |flatter) |with |increases |in |production |of |the |good |on |the |horizontal |
axis |(i.e. |the |PPF |is |usually |bowed |inward). |- |CORRECT |ANSWER✔✔-c. |should |be |interpreted |
as |the |opportunity |cost |of |a |one |unit |increase |in |production |of |the |good |measured |on |the |
horizontal |axis
QUIZ |#1: |What |effect |did |the |destructive |earthquake |that |hit |Christchurch |in |2011 |likely |have |
on |New |Zealand's |PPF?
