BSNS exam prep Multiple Choice Questions
And Correct Answers. Over 100 Q&A
At her current level of consumption, a consumer is willing to pay up to $1.50 for a
bottle of eater and up to $1,500 for a diamond ring because the
a. total utility of diamond rings is greater than the total utility of water
b. total utility of water is less than the marginal utility of a diamond ring
c. marginal utility of a bottle of water is less than the marginal utility of a diamond
ring
d. marginal utility of a bottle of water is greater than the marginal utility of a
diamond ring
e. consumer is irrational and does not understand that water is more important
than a diamond.
C
Any point inside a production possibilities curve is
a. better than points on the production possibilities curve
b. allocatively efficient but technologically inefficient
c. associated with inefficient use of unemployment of some resources
d. associated with movements along the production possibilities curve
e. associated with constand opportunity costs
C
Which of the following concepts can be illiustrated using the prodcution
possibilities curve
i. choice
ii scarcity
iii. price level
iv. opportunity cost
a. ii only
b. i and iii only
c. iii and iv only
d. i, ii, and iv only
e. ii, iii, iv only
D
After graduating from high school, Maria chose to go to college, while Omar
chose to work full-time. which of the following best describes the opportunity
costs for these decisions.
a. Maria's opportunity cost includes the salary she could have earned if she had
gone to work
b. maria's opportunity cost is her living expenses while attending college.
c. Omar' opportunity cost is the salary he will earn from working
d. omar's opportunity cost is the tuition and expenses he would have paid for
,college
e. omar's opportunity cost is definitely greater than Maria's.
A
the basic economic problem of all economies is essentially one of deciding how
to make the best use of
a. unlimited resources to satisfy unlimited wants
b. limited resources to satisfy unlimited wants
c. unlimited resources to satisfy limited wants
d. limited resources to satisfy limited wants
e. limited resources to provide public goods
B
Which of the following describes opportunity cost
a. it is the cost of producing those goods most desired by a given economy
b. it is the cost of the input mix that will lead to the greatest rate of growth for a
given company
c. it is the amount of one product that must be given up in order to produce an
additional unit of another product
d. it is the use of the least-cost method of production
e. it is the cost of labor used in the production process.
C
Which of the following explains why a production possibilities curve is often
represented as concave (bowed out) from the origin.
a. law of demand
b. the law of supply
c. constant returns to scale
d. decreasing opportunity cost
e. increasing opportunity cost
E
According to the law of diminishing marginal utility, which of the following is
true?
a. total satisfaction decreases as more units of a good are consumed
b. the additional satisfaction received from consuming extra units of a good
decreases as consumption of the good increases.
c. the additional satisfaction received from consuming extra units of a good
decreases as consumption of the good decreases
d. the additional satisfaction received from consuming extra unit of a good
increases as consumption of the good increases.
e. when marginal utility is decreasing, total utility is decreasing.
B
After graduating from high school, Peggy Smith decided to enroll in a two-year
program at the local community college rather than to accept a job that offered a
salary of $12,000 per year. if the annual tuition and fees are $4,600, the annual
opportunity cost of attending the community college is
a. $4,600
b. $7,400
c. $12,000
, d. $16,600
e. $24,000
D
In which of the following situations is a good NOT scarce?
a. consumers give up nothing to obtain more of the good
b. consumers can purchase as much of the good as they want at its current
market price
c. large quantities of the good are available in the marketplace
d. there is a surplus of the good at some positive price
e. there is a shortage of the good at some positive value
A
the concept of opportunity cost would no longer be relevant if
a. poverty in an economy no longer existed
b. the supply of all resources were unlimited
c. resources were allocated efficiently
d. real wages were flexible
e. All current incomes were invested in technological research
B
A short-run Phililps curve shows an inverse relationship between
a. interest rates and borrowing
b. inflation and unemployment
c. income and consumption
d. prices and quality demanded
e. inputs and outputs
B
Assume that an economy produces televisions and shoes. which of the followng
would cause the production possibilities curve for this economy to shift outward
a. an increase in labor force
b. an increase in prices of both goods
c. an increase in the prices of resources used to produce both goods
d. a decrease in the demand for shoes
e. a change in consumers' tastes in favor of televisions
A
suppose that in one week Sam can knit 5 sweaters or make 4 blankets and Rob
can knit 10 sweaters or make 6 blankets. which of the following is true?
a. sam has an absolute advantage in making blankets
b. sam has an absolute advantage in knitting sweaters
c. sam has a comparative advantage in making blankets
d. sam has a comparative advantage in knitting sweaters
e. sam has neither a comparative nor an absolute advantage in knitting sweaters
or making blankets
C
If a good is available free of charge, an individual will consume it until
a. marginal utility is zero
b. average utility is zero
c. total utility is zero
And Correct Answers. Over 100 Q&A
At her current level of consumption, a consumer is willing to pay up to $1.50 for a
bottle of eater and up to $1,500 for a diamond ring because the
a. total utility of diamond rings is greater than the total utility of water
b. total utility of water is less than the marginal utility of a diamond ring
c. marginal utility of a bottle of water is less than the marginal utility of a diamond
ring
d. marginal utility of a bottle of water is greater than the marginal utility of a
diamond ring
e. consumer is irrational and does not understand that water is more important
than a diamond.
C
Any point inside a production possibilities curve is
a. better than points on the production possibilities curve
b. allocatively efficient but technologically inefficient
c. associated with inefficient use of unemployment of some resources
d. associated with movements along the production possibilities curve
e. associated with constand opportunity costs
C
Which of the following concepts can be illiustrated using the prodcution
possibilities curve
i. choice
ii scarcity
iii. price level
iv. opportunity cost
a. ii only
b. i and iii only
c. iii and iv only
d. i, ii, and iv only
e. ii, iii, iv only
D
After graduating from high school, Maria chose to go to college, while Omar
chose to work full-time. which of the following best describes the opportunity
costs for these decisions.
a. Maria's opportunity cost includes the salary she could have earned if she had
gone to work
b. maria's opportunity cost is her living expenses while attending college.
c. Omar' opportunity cost is the salary he will earn from working
d. omar's opportunity cost is the tuition and expenses he would have paid for
,college
e. omar's opportunity cost is definitely greater than Maria's.
A
the basic economic problem of all economies is essentially one of deciding how
to make the best use of
a. unlimited resources to satisfy unlimited wants
b. limited resources to satisfy unlimited wants
c. unlimited resources to satisfy limited wants
d. limited resources to satisfy limited wants
e. limited resources to provide public goods
B
Which of the following describes opportunity cost
a. it is the cost of producing those goods most desired by a given economy
b. it is the cost of the input mix that will lead to the greatest rate of growth for a
given company
c. it is the amount of one product that must be given up in order to produce an
additional unit of another product
d. it is the use of the least-cost method of production
e. it is the cost of labor used in the production process.
C
Which of the following explains why a production possibilities curve is often
represented as concave (bowed out) from the origin.
a. law of demand
b. the law of supply
c. constant returns to scale
d. decreasing opportunity cost
e. increasing opportunity cost
E
According to the law of diminishing marginal utility, which of the following is
true?
a. total satisfaction decreases as more units of a good are consumed
b. the additional satisfaction received from consuming extra units of a good
decreases as consumption of the good increases.
c. the additional satisfaction received from consuming extra units of a good
decreases as consumption of the good decreases
d. the additional satisfaction received from consuming extra unit of a good
increases as consumption of the good increases.
e. when marginal utility is decreasing, total utility is decreasing.
B
After graduating from high school, Peggy Smith decided to enroll in a two-year
program at the local community college rather than to accept a job that offered a
salary of $12,000 per year. if the annual tuition and fees are $4,600, the annual
opportunity cost of attending the community college is
a. $4,600
b. $7,400
c. $12,000
, d. $16,600
e. $24,000
D
In which of the following situations is a good NOT scarce?
a. consumers give up nothing to obtain more of the good
b. consumers can purchase as much of the good as they want at its current
market price
c. large quantities of the good are available in the marketplace
d. there is a surplus of the good at some positive price
e. there is a shortage of the good at some positive value
A
the concept of opportunity cost would no longer be relevant if
a. poverty in an economy no longer existed
b. the supply of all resources were unlimited
c. resources were allocated efficiently
d. real wages were flexible
e. All current incomes were invested in technological research
B
A short-run Phililps curve shows an inverse relationship between
a. interest rates and borrowing
b. inflation and unemployment
c. income and consumption
d. prices and quality demanded
e. inputs and outputs
B
Assume that an economy produces televisions and shoes. which of the followng
would cause the production possibilities curve for this economy to shift outward
a. an increase in labor force
b. an increase in prices of both goods
c. an increase in the prices of resources used to produce both goods
d. a decrease in the demand for shoes
e. a change in consumers' tastes in favor of televisions
A
suppose that in one week Sam can knit 5 sweaters or make 4 blankets and Rob
can knit 10 sweaters or make 6 blankets. which of the following is true?
a. sam has an absolute advantage in making blankets
b. sam has an absolute advantage in knitting sweaters
c. sam has a comparative advantage in making blankets
d. sam has a comparative advantage in knitting sweaters
e. sam has neither a comparative nor an absolute advantage in knitting sweaters
or making blankets
C
If a good is available free of charge, an individual will consume it until
a. marginal utility is zero
b. average utility is zero
c. total utility is zero
