SAMPLE mid-semester test, BSNS113
Instructions. Read each question and each answer carefully, and choose the best (most
correct) answer from the list.
In the actual test you’ll have to record your answer on a bubble sheet.
1. Economics can be thought of as the study of the systems societies use to manage trade-
offs. Societies have to make trade-offs because of the combination of scarcity and
a. rationality.
b. decentralised decision-making.
c. individual self-interest.
d. unlimited wants.
2. Suppose that a student membership at Chisholm Park golf course costs $250, which
allows you to play as many rounds of golf as you like over the year. By the last day of
your membership you’ve played 24 rounds. The out-of-pocket (i.e., money) opportunity
cost of playing one last round on the last day is
a. $250.
b. $25.
c. $10.
d. $0.
Table 1. Production possibilities of John and David, who both work in residential
construction
Rooms framed Bathrooms
per day plumbed per day
John 4 2
David 3 1
3. Refer to Table 1. The opportunity cost of David framing one room is _____ bathroom(s).
a. 3
b. 1
c. 1/3
d. 1/2
1
, 4. Refer to Table 1. Based on the data
a. John should do both jobs because he has an absolute advantage in both jobs.
b. David should do both jobs because he has a comparative advantage in both jobs.
c. David should specialise in framing rooms, and John in plumbing.
d. John should specialise in framing rooms, and David in plumbing.
5. In a large economy, the characteristics of productive resources vary widely, so
a. the production possibilities frontier gets steeper as production of the good on
the horizontal axis increases.
b. the opportunity cost of increasing production of the good on the horizontal axis
decreases as production of that good increases.
c. the production possibilities frontier tends to shift outward.
d. the market cannot generally be relied on to allocate resources efficiently.
Figure 1. Production possibilities frontier
Butter
.d
a . b. .
c
.
e
Guns
6. Refer to Figure 1. Which of the following statements is true?
a. Movement from point b to c would require economic growth.
b. Point a is unattainable.
c. Point d is preferred to b.
d. Point d is preferred to e.
7. As price decreases
a. demand increases.
b. the demand curve shifts left.
c. the supply curve shifts right.
d. quantity demanded increases.
2
Instructions. Read each question and each answer carefully, and choose the best (most
correct) answer from the list.
In the actual test you’ll have to record your answer on a bubble sheet.
1. Economics can be thought of as the study of the systems societies use to manage trade-
offs. Societies have to make trade-offs because of the combination of scarcity and
a. rationality.
b. decentralised decision-making.
c. individual self-interest.
d. unlimited wants.
2. Suppose that a student membership at Chisholm Park golf course costs $250, which
allows you to play as many rounds of golf as you like over the year. By the last day of
your membership you’ve played 24 rounds. The out-of-pocket (i.e., money) opportunity
cost of playing one last round on the last day is
a. $250.
b. $25.
c. $10.
d. $0.
Table 1. Production possibilities of John and David, who both work in residential
construction
Rooms framed Bathrooms
per day plumbed per day
John 4 2
David 3 1
3. Refer to Table 1. The opportunity cost of David framing one room is _____ bathroom(s).
a. 3
b. 1
c. 1/3
d. 1/2
1
, 4. Refer to Table 1. Based on the data
a. John should do both jobs because he has an absolute advantage in both jobs.
b. David should do both jobs because he has a comparative advantage in both jobs.
c. David should specialise in framing rooms, and John in plumbing.
d. John should specialise in framing rooms, and David in plumbing.
5. In a large economy, the characteristics of productive resources vary widely, so
a. the production possibilities frontier gets steeper as production of the good on
the horizontal axis increases.
b. the opportunity cost of increasing production of the good on the horizontal axis
decreases as production of that good increases.
c. the production possibilities frontier tends to shift outward.
d. the market cannot generally be relied on to allocate resources efficiently.
Figure 1. Production possibilities frontier
Butter
.d
a . b. .
c
.
e
Guns
6. Refer to Figure 1. Which of the following statements is true?
a. Movement from point b to c would require economic growth.
b. Point a is unattainable.
c. Point d is preferred to b.
d. Point d is preferred to e.
7. As price decreases
a. demand increases.
b. the demand curve shifts left.
c. the supply curve shifts right.
d. quantity demanded increases.
2
