Final Sınavı - Introduction to Economics 1

Soru 1:

Which of the followings refers to the type of market in which the economic profit of each individual seller is zero, and there is no incentive for entry or exit ?

A) Short-run market supply curve. B) Normal economic profit. C) Break-even point. D) Perfectly competitive market equilibrium. E) Long-run market supply curve.

Soru 2:

I. Consumer’s preferences are transitive.II. Consumer’s preferences are incomplete.III. Consumers always prefer more of a commodity to less.Which of the statements given about consumer preferences are true?

A) Only I B) Only II C) I and II D) I and III E) II and III

Soru 3:

The market structure with only one producer/seller which acts as a price setter of a good with no close substitutes is called:

A) Perfect competition. B) Monopolistic competition. C) Monopoly. D) Natural competition. E) Oligopoly.

Soru 4:

If the consumer is able to compare and rank all possible baskets, which consumer assumption is processed?

A) Marginal rate of substitution increases. B) Consumers reveal a diminishing marginal rate of substitution. C) Consumers always prefer more of a commodity to less D) Preferences are transitive E) Preferences are complete.

Soru 5:

Which of the followings refers to a market structure in which a few large firms compete ?

A) Oligopoly. B) Monopoly. C) Perfect competition. D) Monopolistic competition. E) Market power.

Soru 6:

______ can be defined as the additional revenue that a firm earns when it increases production by one more unit. Which of the following completes the statement above?

A) Marginal cost B) Marginal revenue C) Total revenue D) Total cost E) Opportunity cost

Soru 7:

Why each input is subject to the Law of Diminishing Returns?

A) Since the technology always improves, B) Because of incresing returns to scale C) Because of scope economies D) Because of long run E) The reason is we are in the short run

Soru 8:

I. Rules that determine which actions are allowable II. Strategies that players employ to attain their objectives in the game III. The interactions among the players aren't crucial in determining the outcome IV. Payoffs that are the results of the interaction among the players’ strategies Which of the given are the characteristics of games?

A) I, II, III B) I, II, IV C) I, III, IV D) II, III, IV E) I, II, III, IV

Soru 9:

Which of the following is a natural resource?

A) Land B) Building C) Equipment D) Entrepreneur E) Labor

Soru 10:

A consumer consumes the goods X and Y, for this information which of the following statements is true?

A) If the price of one good decreases, the budget line shifts inward. B) If the price of one good increases, the budget line shifts outward. C) The satisfaction is maximized when the marginal rate of substitution is equal to the ratio of the prices. D) The indifference curves are downward sloping and can intersect one another. E) An increase in the price of one good causes that good’s quantity consumed to increase.

Soru 11:

I. Externalities II. Path dependence III. Existence of public goods Which of the above is among the reasons for inefficiencies in perfect competitive markets?

A) Only III B) I, II C) I, III D) II, III E) I, II, III

Soru 12:

I. Marginal Benefit II. Marginal Cost III. Positive incentives IV. Negative incentives Suppose that a person needs to make a decision to buy a new car. Which of the parameter(s) in economics above would affect the person’s decision making in economics?

A) I and II B) I and III C) II and III D) I, II and IV E) I, II, III and IV

Soru 13:

I. Market Price II. Technology III. Changes in Population Which of the givens are considered a determinant of labor supply?

A) Only I B) Only II C) I and II D) I and III E) II and III

Soru 14:

Which of the followings is compensation for the use of capital by firms called?

A) Surplus B) Demand C) Credit D) Interest E) Rent

Soru 15:

What is the difference between economic costs and the accounting costs in economics?

A) the explicit expenses you must pay, B) the explicit expenses you must pay for hiring labor, C) the explicit expenses you must pay for leasing capital, D) the monetary value of time, effort and other resources you have to give up, E) Nothing, they are equl to each other.

Soru 16:

If there are four projects and each has the Net Present Value (NPV) of $-1800, $0, $500 and $1500 respectively, which project should the investor choose?

A) The first project because is has the highest absolute value of NPV. B) The second project because NPV=0 means that project yields maximum orıfits. C) Any of the projects which has a positive NPV; the value of NPV does not matter as long as it is positive. D) The fourth project as it has the highest NPV. E) NPV is not important when making investment decisions, so the investor can choose any of the four projects.

Soru 17:

The price paid for the use of land and other natural resources is called:

A) Wage B) Salary C) Interest D) Profit E) Economic Rent

Soru 18:

Which of the following refers to work time and physical and mental effort devoted to producing goods and services?

A) Land B) Labor C) Capital D) Entrepreneurship E) Natural resources

Soru 19:

.......... occurs when economies of scale are so large that one firm can supply the entire market at a lower average cost than two or more firms.

A) Competition B) Government regulation C) Ownership D) Collusion E) A natural monopoly

Soru 20:

.......... is a cost that has already been incurred and thus cannot be recovered. Which of the followings completes the gap in the sentence above?

A) A marginal cost B) An average cost C) A total cost D) A sunk cost E) A fixed cost