BSNS113 Exam Multiple-Choice
Questions and Answers 100% Solved
Microeconomics can be described as the study of...
A) How households and firms make decisions and how they interact in
individual markets.
B) How well markets work
C) How firms and households make choices in the face of scarcity.
D)All of the above. - ✔✔D) All of the above
Which of the following is most likely a macroeconomic topic?
A) The role of the Reserve Bank in controlling inflation.
B) Who gains and who loses from international trade
C) What the "optimal" amount of pollution is
D) How taxes affect peoples' behaviour - ✔✔A) The role of the Reserve
Bank in controlling inflation.
Consider the following two statement:
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,(i) The government should increase minimum wages
(ii) If the Reserve Bank increases interest rates, the New Zealand dollar is
likely to increase in value.
A)(i) Is a normative statement and (ii) a positive statement
B) (i) Is a positive statement and (ii) a normative statement
C) Both statements are positive
D) Both statements are normative. - ✔✔A) (i) is a normative statement and
(ii) a positive statement
Suppose that to sit an exam you had to take two 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. You had to bring a pencil, which you already
owned. What is the opportunity cost to you of sitting this exam?
A) $70 plus the total cost of the pencil
B) $70 plus a few cents for the "wear-and-tear" to your pencil.
C) Just $10 for the buses
D) Nothing at all, if you enjoy the exam. - ✔✔B) $70 plus a few cents for
the "wear-and-tear" to your pencil.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, After leaving high school, Sandra considered three options for what to do
next, listened 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 University is the?
A) Net benefit she would 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.
D) Direct cost of attending Otago Uni (fees, books, etc.) plus living
expenses (food, clothing, etc.) plus the income and work experience she
could have earned at the brewery. - ✔✔C)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
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Questions and Answers 100% Solved
Microeconomics can be described as the study of...
A) How households and firms make decisions and how they interact in
individual markets.
B) How well markets work
C) How firms and households make choices in the face of scarcity.
D)All of the above. - ✔✔D) All of the above
Which of the following is most likely a macroeconomic topic?
A) The role of the Reserve Bank in controlling inflation.
B) Who gains and who loses from international trade
C) What the "optimal" amount of pollution is
D) How taxes affect peoples' behaviour - ✔✔A) The role of the Reserve
Bank in controlling inflation.
Consider the following two statement:
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,(i) The government should increase minimum wages
(ii) If the Reserve Bank increases interest rates, the New Zealand dollar is
likely to increase in value.
A)(i) Is a normative statement and (ii) a positive statement
B) (i) Is a positive statement and (ii) a normative statement
C) Both statements are positive
D) Both statements are normative. - ✔✔A) (i) is a normative statement and
(ii) a positive statement
Suppose that to sit an exam you had to take two 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. You had to bring a pencil, which you already
owned. What is the opportunity cost to you of sitting this exam?
A) $70 plus the total cost of the pencil
B) $70 plus a few cents for the "wear-and-tear" to your pencil.
C) Just $10 for the buses
D) Nothing at all, if you enjoy the exam. - ✔✔B) $70 plus a few cents for
the "wear-and-tear" to your pencil.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, After leaving high school, Sandra considered three options for what to do
next, listened 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 University is the?
A) Net benefit she would 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.
D) Direct cost of attending Otago Uni (fees, books, etc.) plus living
expenses (food, clothing, etc.) plus the income and work experience she
could have earned at the brewery. - ✔✔C)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
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
