Latest 2024/2025 BSNS113 Actual Exam Questions And Answers
{100%correct}/Verified Graded A+
1. economics study of how resources are managed in society
2. scarcity limited means but unlimited wants
3. three economic What to produce? How to produce? For whom to pro-
questions duce?
4. incentives people react to changes in their economic environment.
Changes in price or incomes cause people to act differ-
ently
5. economic costs opportunity cost. The total net value of the next best
alternative forgone when making a decision.
6. Opportunity cost OC of activity A = total cost of A + any benefit lost from B
formula - costs avoided choosing A (NO SUNK COSTS)
7. positive eco- scientific study of economics. Portrays facts and uses
nomics words like 'is'
8. normative eco- evaluating side of economics. Portrays opinions and uses
nomics words like "ought" and "should"
9. interdependence economic agents rely on each other to meet their current
level of goods and services.
10. PPF assump- One country, two goods, fixed level of resources and
tions technology and resource heterogeneity (differ in quality
of production of each good)
11. PPF A, B, C, X = feasible combinations. A, B, C = technically
efficient. E = economically efficient. D = infeasible in the
current economy
, BSNS113
Study online at https://quizlet.com/_geu0c9
12. technically effi- producing the maximum amount of goods and services
cient given its inputs
13. economic effi- economy is producing approximately equal amount of
ciency both goods
14. PPF shifts out- economic growth; if a resource or technology that affects
wards both goods increases
15. PPF shift out- an improvement in technology or resources for one good.
wards for one This makes the PPF steeper
good
16. absolute advan- being able to use fewer inputs to provide a good or service
tage than another producer
17. comparative ad- the ability to produce a good or service at a lower oppor-
vantage tunity cost than another producer
18. trade between producers supply what they have a comparative advan-
countries tage in and demand what they do not
19. opportunity cost OC(A) = B/A
equation: trade
20. terms of trade the ratio at which a country can trade its exports for
imports from other countries
21. Daniel Ricardo invented the theory of comparative advantage
22. Karl Marx wrote Das Kapital, the father of communism
23. Adam Smith Wrote "the Wealth of Nations" in 1776 and created the
Theory of the Invisible Hand (market responds to price
, BSNS113
signals) and adopted the division of labour and absolute
advantage
24. Alfred Marshall supply and demand analysis, credited for creating the
supply-demand model
25. movements changes in price cause a change in Qd
along the
demand curve
26. demand curve marginal benefit curve
27. movements of change in demand due to changes in the no. of con-
the demand sumers, tastes, incomes, price of complements, price of
curve substitutes, price expectations (#TICSPc)
28. normal good all things equal, an increase in income would lead to an
increase in demand for the good
29. inferior good all things equal, an increase in income would lead to a
decrease in demand for the good
30. substitutes goods used in the place of one-another. when the price of
one good increases and the demand for another decreas-
es (butter and margarine)
31. complements goods used together. Decrease in the price of one causes
demand for the other to increase
32. substitution ef- if the price of a good decreases the consumers substitute
fect towards the good as it becomes relatively cheaper
33. income effect if the price of a good decreases, consumers have more
income and can purchase more of it
34. movements due to price changes
along the supply
curve
35.
{100%correct}/Verified Graded A+
1. economics study of how resources are managed in society
2. scarcity limited means but unlimited wants
3. three economic What to produce? How to produce? For whom to pro-
questions duce?
4. incentives people react to changes in their economic environment.
Changes in price or incomes cause people to act differ-
ently
5. economic costs opportunity cost. The total net value of the next best
alternative forgone when making a decision.
6. Opportunity cost OC of activity A = total cost of A + any benefit lost from B
formula - costs avoided choosing A (NO SUNK COSTS)
7. positive eco- scientific study of economics. Portrays facts and uses
nomics words like 'is'
8. normative eco- evaluating side of economics. Portrays opinions and uses
nomics words like "ought" and "should"
9. interdependence economic agents rely on each other to meet their current
level of goods and services.
10. PPF assump- One country, two goods, fixed level of resources and
tions technology and resource heterogeneity (differ in quality
of production of each good)
11. PPF A, B, C, X = feasible combinations. A, B, C = technically
efficient. E = economically efficient. D = infeasible in the
current economy
, BSNS113
Study online at https://quizlet.com/_geu0c9
12. technically effi- producing the maximum amount of goods and services
cient given its inputs
13. economic effi- economy is producing approximately equal amount of
ciency both goods
14. PPF shifts out- economic growth; if a resource or technology that affects
wards both goods increases
15. PPF shift out- an improvement in technology or resources for one good.
wards for one This makes the PPF steeper
good
16. absolute advan- being able to use fewer inputs to provide a good or service
tage than another producer
17. comparative ad- the ability to produce a good or service at a lower oppor-
vantage tunity cost than another producer
18. trade between producers supply what they have a comparative advan-
countries tage in and demand what they do not
19. opportunity cost OC(A) = B/A
equation: trade
20. terms of trade the ratio at which a country can trade its exports for
imports from other countries
21. Daniel Ricardo invented the theory of comparative advantage
22. Karl Marx wrote Das Kapital, the father of communism
23. Adam Smith Wrote "the Wealth of Nations" in 1776 and created the
Theory of the Invisible Hand (market responds to price
, BSNS113
signals) and adopted the division of labour and absolute
advantage
24. Alfred Marshall supply and demand analysis, credited for creating the
supply-demand model
25. movements changes in price cause a change in Qd
along the
demand curve
26. demand curve marginal benefit curve
27. movements of change in demand due to changes in the no. of con-
the demand sumers, tastes, incomes, price of complements, price of
curve substitutes, price expectations (#TICSPc)
28. normal good all things equal, an increase in income would lead to an
increase in demand for the good
29. inferior good all things equal, an increase in income would lead to a
decrease in demand for the good
30. substitutes goods used in the place of one-another. when the price of
one good increases and the demand for another decreas-
es (butter and margarine)
31. complements goods used together. Decrease in the price of one causes
demand for the other to increase
32. substitution ef- if the price of a good decreases the consumers substitute
fect towards the good as it becomes relatively cheaper
33. income effect if the price of a good decreases, consumers have more
income and can purchase more of it
34. movements due to price changes
along the supply
curve
35.
