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BSNS 113 FINAL EXAM NEWEST ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT
VERIFIED ANSWERS (DETAILED ANSWERS)
ALREADY GRADED A+ 100% GUARANTEED TO
PASS CONCEPTS!!!
Which of the following is most likely a macroeconomic
topic? - .....ANSWER ...✔✔ 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? - .....ANSWER ...✔✔ (i)
is a positive statement and (ii) a normative statement.
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
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pencil, which you already owned. What is the
opportunity cost to you of sitting this exam? -
.....ANSWER ...✔✔ $100 plus a few cents for the
'wear-and-tear' to your pencil.
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
- .....ANSWER ...✔✔ direct cost of attending Otago
Uni (fees, books, etc.) plus the income and work
experience she could have earned at the brewery.
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? - .....ANSWER
...✔✔ $60
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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 - .....ANSWER ...✔✔ lead
to more injuries to cyclists
The slope of the production possibilities frontier (PPF) -
.....ANSWER ...✔✔ should be interpreted as the
opportunity cost of a one unit increase in production of
the good measured on the horizontal axis.
What effect did the destructive earthquake that hit
Christchurch in 2011 likely have on New Zealand's PPF?
- .....ANSWER ...✔✔ It shifted the PPF inward.
Refer to Figure 1. Which of the points on the diagram
represent technically feasible combinations of goods
and services producible in New Zealand? - .....ANSWER
...✔✔ A, B and C only
Refer to Figure 1 in the previous question. Which of the
points on the diagram represent combinations of goods
and services that require technically efficient production
methods? - .....ANSWER ...✔✔ A and B
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There are 'gains from trade' because the productivity of
resources varies - .....ANSWER ...✔✔ due to all of the
types of variation in answers (1), (2), and (3) above.
- geographically, with the scale of production, across
resources units of the same type (e.g. labour).
Economies of scale refers to - .....ANSWER ...✔✔ the
decrease in minimum average production cost as the
firm expands capacity to increase output per time
period.
Consider a production process that benefits from
economies of scale. Suppose that the price of labour
(the wage rate) increases. In that case, the long-run
average production cost curve will - .....ANSWER
...✔✔ shift up, but possibly by less than the change in
the wage rate times the number of labour hours because
the firm will have time to substitute other inputs, e.g.,
automation, for higher-cost labour.
Refer to Figure 1. The opportunity cost of producing
each tonne of beef in Peru is - .....ANSWER ...✔✔ 3
tonnes of fruit.
BSNS 113 FINAL EXAM NEWEST ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT
VERIFIED ANSWERS (DETAILED ANSWERS)
ALREADY GRADED A+ 100% GUARANTEED TO
PASS CONCEPTS!!!
Which of the following is most likely a macroeconomic
topic? - .....ANSWER ...✔✔ 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? - .....ANSWER ...✔✔ (i)
is a positive statement and (ii) a normative statement.
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
,2|Page
pencil, which you already owned. What is the
opportunity cost to you of sitting this exam? -
.....ANSWER ...✔✔ $100 plus a few cents for the
'wear-and-tear' to your pencil.
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
- .....ANSWER ...✔✔ direct cost of attending Otago
Uni (fees, books, etc.) plus the income and work
experience she could have earned at the brewery.
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? - .....ANSWER
...✔✔ $60
,3|Page
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 - .....ANSWER ...✔✔ lead
to more injuries to cyclists
The slope of the production possibilities frontier (PPF) -
.....ANSWER ...✔✔ should be interpreted as the
opportunity cost of a one unit increase in production of
the good measured on the horizontal axis.
What effect did the destructive earthquake that hit
Christchurch in 2011 likely have on New Zealand's PPF?
- .....ANSWER ...✔✔ It shifted the PPF inward.
Refer to Figure 1. Which of the points on the diagram
represent technically feasible combinations of goods
and services producible in New Zealand? - .....ANSWER
...✔✔ A, B and C only
Refer to Figure 1 in the previous question. Which of the
points on the diagram represent combinations of goods
and services that require technically efficient production
methods? - .....ANSWER ...✔✔ A and B
, 4|Page
There are 'gains from trade' because the productivity of
resources varies - .....ANSWER ...✔✔ due to all of the
types of variation in answers (1), (2), and (3) above.
- geographically, with the scale of production, across
resources units of the same type (e.g. labour).
Economies of scale refers to - .....ANSWER ...✔✔ the
decrease in minimum average production cost as the
firm expands capacity to increase output per time
period.
Consider a production process that benefits from
economies of scale. Suppose that the price of labour
(the wage rate) increases. In that case, the long-run
average production cost curve will - .....ANSWER
...✔✔ shift up, but possibly by less than the change in
the wage rate times the number of labour hours because
the firm will have time to substitute other inputs, e.g.,
automation, for higher-cost labour.
Refer to Figure 1. The opportunity cost of producing
each tonne of beef in Peru is - .....ANSWER ...✔✔ 3
tonnes of fruit.
