BSN 205 EXAM|ACTUAL QUESTIONS AND ANSWERS|NEW UPDATE|GRADED A+
"Economy-wide phenomena including inflation, unemployment and economic growth" is what type of
economics? - (ANSWER)Macroeconomics
"The study of how house holds and firms make decisions and how they interact in markets" is what type
of economics? - (ANSWER)Microeconomics
What is Positive Analysis? - (ANSWER)A statement describing how something is
What is Normative Analysis? - (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. - (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. - (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?
, BSN 205 EXAM|ACTUAL QUESTIONS AND ANSWERS|NEW UPDATE|GRADED A+
a. B, C, D, and E
b. A, B, C, and E
c. A, B, and C
d. A, B, C, and D - (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 - (ANSWER)a. A, B, and C
Which of these points is unfeasible or impossible to achieve?
a. B
b. D
c. E
d. A - (ANSWER)c. E
"The ability to produce a good using the smallest amount of inputs/resources than someone/another
company" represents what? - (ANSWER)Absolute Advantage
"The cost of something in regards to what we give up or could have been doing instead" is the definition
of what? - (ANSWER)Opportunity Cost
If you have Comparative Advantage then you have...? - (ANSWER)The smallest Opportunity Cost for
making/doing a good or service.
Can someone have Comparative Advantage in both goods if there are only two in the market? -
(ANSWER)No they cant.
"Economy-wide phenomena including inflation, unemployment and economic growth" is what type of
economics? - (ANSWER)Macroeconomics
"The study of how house holds and firms make decisions and how they interact in markets" is what type
of economics? - (ANSWER)Microeconomics
What is Positive Analysis? - (ANSWER)A statement describing how something is
What is Normative Analysis? - (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. - (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. - (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?
, BSN 205 EXAM|ACTUAL QUESTIONS AND ANSWERS|NEW UPDATE|GRADED A+
a. B, C, D, and E
b. A, B, C, and E
c. A, B, and C
d. A, B, C, and D - (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 - (ANSWER)a. A, B, and C
Which of these points is unfeasible or impossible to achieve?
a. B
b. D
c. E
d. A - (ANSWER)c. E
"The ability to produce a good using the smallest amount of inputs/resources than someone/another
company" represents what? - (ANSWER)Absolute Advantage
"The cost of something in regards to what we give up or could have been doing instead" is the definition
of what? - (ANSWER)Opportunity Cost
If you have Comparative Advantage then you have...? - (ANSWER)The smallest Opportunity Cost for
making/doing a good or service.
Can someone have Comparative Advantage in both goods if there are only two in the market? -
(ANSWER)No they cant.
