BSNS 113 Final Exam Revision Questions And
Correct Answers. Perfect Solution For Your Exam
Preparation.
"Economy-wide phenomena including inflation, unemployment and economic
growth" is what type of economics?
Macroeconomics
"The study of how house holds and firms make decisions and how they interact
in markets" is what type of economics?
Microeconomics
What is Positive Analysis?
A statement describing how something is
What is Normative Analysis?
A statement describing how something should be
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 peoples' behaviour.
b. The role of the Reserve Bank in controlling inflation.
Consider the following two statements:
Humans tend to have effectively unlimited wants for goods and services.
Humans should limit their consumption for the sake of the environment.
Which of the following is true?
a. Both statements are normative.
b. Both statements are positive.
c. (i) is a positive statement and (ii) a normative statement.
d. (i) is a normative statement and (ii) a positive statement.
c. (i) is a positive statement and (ii) a normative statement.
Which of the points on the diagram represent technically feasible combinations
of goods and services producible in New Zealand?
a. B, C, D, and E
b. A, B, C, and E
c. A, B, and C
d. A, B, C, and D
d. A, B, C, and D
Which of the points on the diagram represent combinations of goods and
services that require technically efficient production methods?
a. A, B, and C
b. E
c. A, B, C, and D
d. D and E
a. A, B, and C
, Which of these points is unfeasible or impossible to achieve?
a. B
b. D
c. E
d. A
c. E
"The ability to produce a good using the smallest amount of inputs/resources
than someone/another company" represents what?
Absolute Advantage
"The cost of something in regards to what we give up or could have been doing
instead" is the definition of what?
Opportunity Cost
If you have Comparative Advantage then you have...?
The smallest Opportunity Cost for making/doing a good or service.
Can someone have Comparative Advantage in both goods if there are only two in
the market?
No they cant.
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).
c. should be interpreted as the opportunity cost of a one unit increase in production of
the good measured on the horizontal axis.
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
c. $60
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 Uni is the
a. net benefit she would have received from attending Auckland Uni.
b. direct cost of attending Otago Uni (fees, books, etc.).
c. direct cost of attending Otago Uni (fees, books, etc.) plus the income and work
experience she could have earned at the brewery.
Correct Answers. Perfect Solution For Your Exam
Preparation.
"Economy-wide phenomena including inflation, unemployment and economic
growth" is what type of economics?
Macroeconomics
"The study of how house holds and firms make decisions and how they interact
in markets" is what type of economics?
Microeconomics
What is Positive Analysis?
A statement describing how something is
What is Normative Analysis?
A statement describing how something should be
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 peoples' behaviour.
b. The role of the Reserve Bank in controlling inflation.
Consider the following two statements:
Humans tend to have effectively unlimited wants for goods and services.
Humans should limit their consumption for the sake of the environment.
Which of the following is true?
a. Both statements are normative.
b. Both statements are positive.
c. (i) is a positive statement and (ii) a normative statement.
d. (i) is a normative statement and (ii) a positive statement.
c. (i) is a positive statement and (ii) a normative statement.
Which of the points on the diagram represent technically feasible combinations
of goods and services producible in New Zealand?
a. B, C, D, and E
b. A, B, C, and E
c. A, B, and C
d. A, B, C, and D
d. A, B, C, and D
Which of the points on the diagram represent combinations of goods and
services that require technically efficient production methods?
a. A, B, and C
b. E
c. A, B, C, and D
d. D and E
a. A, B, and C
, Which of these points is unfeasible or impossible to achieve?
a. B
b. D
c. E
d. A
c. E
"The ability to produce a good using the smallest amount of inputs/resources
than someone/another company" represents what?
Absolute Advantage
"The cost of something in regards to what we give up or could have been doing
instead" is the definition of what?
Opportunity Cost
If you have Comparative Advantage then you have...?
The smallest Opportunity Cost for making/doing a good or service.
Can someone have Comparative Advantage in both goods if there are only two in
the market?
No they cant.
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).
c. should be interpreted as the opportunity cost of a one unit increase in production of
the good measured on the horizontal axis.
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
c. $60
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 Uni is the
a. net benefit she would have received from attending Auckland Uni.
b. direct cost of attending Otago Uni (fees, books, etc.).
c. direct cost of attending Otago Uni (fees, books, etc.) plus the income and work
experience she could have earned at the brewery.
