Final Sınavı - Introduction to Economics 1

Soru 1:

"The cross-price elasticity of demand..........." Which of the following best completes the sentence above?

A) has price elasticity that is the same along the whole demand curve B) varies depending on whether the good is a luxury or necessity good for the consumer C) is computed as the price of a good multiplying with the quantity sold D) is a measure of how much the quantity demanded of one good responds to a change in the price of another good E) measures the responsiveness of demand to income changes.

Soru 2:

Which of the following statement correctly represents the law of diminishing marginal utility?

A) as the rate of consumption increases, the total utility will increase at decreasing rate B) as the rate of consumption increases, the total utility will decrease at decreasing rate C) as the rate of consumption increases, the total utility will decrease at increasing rate D) as the rate of consumption increases, the total utility will increase at increasing rate E) as the rate of consumption increases, the total utility will be max all the time

Soru 3:

The ...... is where firms hire employees to perform different tasks in their organizations and households supply the labor and firms demand it. Which of the following completes the sentence above?

A) input B) labor market C) production function D) market demand E) labor supply

Soru 4:

I. Building II. Labor III. Machinery IV. Technology Which of the above can be considered as ‘fixed inputs’ for a firm?

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

Soru 5:

How the total revenue of a firm is calculated?

A) Average Revenue - Average Total Cost B) Average Total Cost x Quantity C) Price x Quantity D) Total Cost + Total Profit E) Total Profit / Price

Soru 6:

What is the conversion of resources which are called inputs or factors of production into new goods and services called outputs over a period of time called?

A) Production process B) Functional training C) Entrepreneurial progress D) Skillful extraction E) Creative destruction

Soru 7:

I. The lower the interest rate is, the more capital the businesses will demand. II. The more capital the companies demand, the lesser the funding it requires to finance. III. The interest rate goes up, the price (the cost) of the current consumption will also go up. Which of the statements for loanable funds market can be said to be true?

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

Soru 8:

What is the increase in the general price level (or overall level of prices) in the economy within a given period of time?

A) Inequity B) Efficiency C) Market failure D) Inflation E) Externality

Soru 9:

Calculate the average revenue for a perfectly competitive firm whose total revenue equals 168 when the total number of the products is 8.

A) 19 B) 20 C) 21 D) 22 E) 24

Soru 10:

Which of the following refers to the amount that the producers are willing and able to supply at every given prices?

A) Marginal cost B) Effective supply C) The law of supply D) Quantity supplied E) Determinants of supply

Soru 11:

Which of the followings is not one of the conditions for a competitive industry?

A) There are many firms; a single firm produces and sells a tiny fraction of the total market sold to many consumers. B) Producers and consumers are well informed about the quality and price of the good in question. C) Firms produce and sell an identical product. D) There are no restrictions on entry into (or exit from) the market. E) Established firms have any specific advantage over new firms.

Soru 12:

For a labor market in equilibrium which of the following changes will shirt the labor supply to the right?

A) The number of firms in the market decreasing B) The number of firms in the market increasing C) Prices of other factors of production increasing D) The number of workers decreasing E) The number of workers increasing

Soru 13:

Which of the following measures the variable cost per unit of the output produced?

A) Average variable cost B) Average fixed cost C) Average total cost D) Marginal cost E) Average total cost

Soru 14:

What is the term for the legal minimum on the price at which a good or service can be sold?

A) price floor B) elasticity of price C) minimum wage D) price ceiling E) taxation

Soru 15:

When does a natural monopoly occur?

A) A natural monopoly occurs when economies of scale are so narrow that one firm can supply the entire market at a lower average cost than two or more firms. B) A natural monopoly occurs when economies of scale are so narrow that one firm can supply the entire market at a lower average cost than one firm. C) A natural monopoly occurs when economies of scale are so large that one firm can supply the entire market at a higher average cost than two or more firms. D) A natural monopoly 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. E) A natural monopoly occurs when economies of scale are so large that one firm can supply the entire market at a higher average cost than two or more firms.

Soru 16:

Which one of the following statements about economics is false ?

A) Economics studies how individuals and societies prioritize their needs and choose to use scarce resources at their disposal. B) Economics could be defined as the study of how society sets priorities in managing its scarce resources. C) Economists study human behavior as a relationship between unlimited ends and scarce means with alternative uses. D) Economics has three major branches: microeconomics and development economics,macroeconomics. E) Main problems that economics addresses include what to produce, how to produce and for whom to produce.

Soru 17:

What measures the responsiveness of demand to changes in price?

A) The Income Elasticity of Demand B) Total Revenue C) The Demand Curve D) The Price Elasticity of Demand E) The Change in Supply

Soru 18:

What is the purpose of minimum wage laws?

A) to create a fair wage floor to protect workers B) to decrease the number of unslilled workers C) to decrease the rate of unemployment D) to employ more teens in the labour market E) to give skilled workers less wage

Soru 19:

Which of the followings is equal to the average product of labor?

A) The division of the total cost by the quantity of labor employed. B) The division of the total cost by the quantity of natural resources used. C) The division of the total product by the quantity of fixed inputs. D) The division of quantity of labor employed by the total cost. E) The division of the total product by the quantity of labor employed.

Soru 20:

Imagine that a person fuels up his car since he thinks that the price of gasoline will go up soon. Which of the following is the motive in buying gasoline?

A) Expectations B) Substitute goods C) Number of buyers D) Complimentary goods E) Prices of related goods