BSNS 113 Final Exam Revision questions and answers
2024\2025 A+ Grade
"Economy-wide phenomena including inflation, unemployment and economic growth" is what type of
economics?
- correct answer Macroeconomics
"The study of how house holds and firms make decisions and how they interact in markets" is what type
of economics?
- correct answer Microeconomics
What is Positive Analysis?
- correct answer A statement describing how something is
What is Normative Analysis?
- correct answer 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.
- correct answer 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.
- correct answer 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
- correct answer 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
- correct answer a. A, B, and C
Which of these points is unfeasible or impossible to achieve?
a. B
b. D
c. E
d. A
- correct answer c. E
"The ability to produce a good using the smallest amount of inputs/resources than someone/another
company" represents what?
- correct answer Absolute Advantage
2024\2025 A+ Grade
"Economy-wide phenomena including inflation, unemployment and economic growth" is what type of
economics?
- correct answer Macroeconomics
"The study of how house holds and firms make decisions and how they interact in markets" is what type
of economics?
- correct answer Microeconomics
What is Positive Analysis?
- correct answer A statement describing how something is
What is Normative Analysis?
- correct answer 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.
- correct answer 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.
- correct answer 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
- correct answer 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
- correct answer a. A, B, and C
Which of these points is unfeasible or impossible to achieve?
a. B
b. D
c. E
d. A
- correct answer c. E
"The ability to produce a good using the smallest amount of inputs/resources than someone/another
company" represents what?
- correct answer Absolute Advantage
