BSNS113 Quiz Multiple-Choice
Questions With Guaranteed Pass
Solutions.
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. - Answer 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 - Answer A) The role of the Reserve Bank in controlling
inflation.
Consider the following two statement:
(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. - Answer 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,
, 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. - Answer B) $70 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, 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. - Answer 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 your usual $10. What is your opportunity cost if you choose to
go to the concert?
A) $0
B) $40
C)$100
D)$60 - Answer D) $60
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?
A) Reduce the number of traffic accidents
B) Lead to fewer injuries to cyclists
Questions With Guaranteed Pass
Solutions.
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. - Answer 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 - Answer A) The role of the Reserve Bank in controlling
inflation.
Consider the following two statement:
(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. - Answer 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,
, 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. - Answer B) $70 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, 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. - Answer 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 your usual $10. What is your opportunity cost if you choose to
go to the concert?
A) $0
B) $40
C)$100
D)$60 - Answer D) $60
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?
A) Reduce the number of traffic accidents
B) Lead to fewer injuries to cyclists
