Final Sınavı - Introduction to Economics 1

Soru 1:

'As units of labor are added (with all other inputs held constant) after a point there will be less and less increases in output' describes which economic principle?

A) The Law of Diminishing Marginal Utility of Labour B) The Law of Diminishing Marginal Product of Labor C) The Law of Diminishing Marginal Rate of Substitution D) The Law of Demand of Labor E) The Law of Labor Supply

Soru 2:

The table above shows some information for a firm that produces shoes. According to the given information, what is the profit of this firm?

A) 85.000 TL B) 50.000 TL C) 35.000 TL D) 15.000 TL E) 5.000 TL

Soru 3:

Which one below is not one of the basic factors of production?

A) Labor B) Natural resources C) Learning-by-doing D) Entrepreneurship E) Capital

Soru 4:

I. It can simply be described as the cost of producing the last unit of output. II. It is calculated as the increase in the total cost multiplied by the increase in the output. III. It tells us how the total cost (and the total variable cost) changes as the output changes. Which of the statements above is true in terms of ‘marginal cost’?

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

Soru 5:

Which of the following does the figure above indicate?

A) An increase in equilibrium wage and employment increases the labor demand. B) An decrease in equilibrium wage and employment increases the labor demand. C) An decrease in labor demand increases the equilibrium wage and employment. D) An increase in labor demand decreases the equilibrium wage and employment. E) An increase in labor demand increases the equilibrium wage and employment.

Soru 6:

Capital Product Labor Land Which of the above are among the factors of production?

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

Soru 7:

Which of the following situations represents “ price discrimination ”?

A) The monopolist charges the same price for each unit sold to each consumer. B) Firms sell the same good to different customers at different prices. C) The practice of charging the minimum price for each unit sold. D) Producers offer same versions of the different product at same prices. E) Producers recognize that willingness to pay decreases for additional units for different consumers.

Soru 8:

Which of the following situations represents “ uniform pricing ”?

A) The monopolist charges the same price for each unit sold to each consumer. B) Firms sell the same good to different customers at different prices. C) The practice of charging the maximum price for each unit sold. D) Producers offer slightly different versions of the same product at different prices. E) Producers recognize that willingness to pay decreases for additional units for the same consumer.

Soru 9:

In economics, which of the following statement is the correct illustration of cost?

A) the amount we pay or the price we are charged for a good or service we get B) It is the sum of implicit costs, which is the opportunity cost, which is the next best alternative given up plus the out-of-pocket costs or explicit expenses. C) It is the out-of-pocket costs or explicit expenses. D) It is the sum of implicit costs. E) It is the sum of accounting costs.

Soru 10:

What is the best alternative that we give up when we make a choice or a decision is called?

A) Opportunity cost B) Total cost C) Marginal cost D) Explicit cost E) Implicit cost

Soru 11:

I. The Marginal Revenue Product of Labor (MRP L ) means the extra revenue generated by the last hired unit of labor. II. A rational, profit-maximizing firm in a competitive industry will keep hiring workers until the wage is less the firm's MRP L. III. Labor demand and supply in the market determine the level of wage and employment, with wage increasing or decreasing as needed to close any gap between demand and supply. Which of the given statements about the equilibrium in the labour 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 12:

In the market for TV, there are many brands like LG, Vestel, Sony and Samsung. They sell products which are differentiated according to quality, price design etc. Hence consumers don't perceive these brands identical and firms can sell their products.What kind of market structure can we see among firms in this example?

A) Monopoly B) Oligopoly C) Monolistic competition D) Imperfect competition E) Duopoly game

Soru 13:

I. The interest rate is determined in a market called the loanable funds market. II. In the loanable funds market, borrowers are the demanders of funds. III. In the loanable funds market, lenders are the suppliers of funds. What can be said true for the given statements about the market for loanable funds?

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

Soru 14:

The law of demand states which of the followings correctly?

A) other things equal, when the price of a good rises, the quantity demanded of that good rises. B) other things equal, when the price of a good rises, the demand of that good falls. C) other things equal, when the price of a good rises, the quantity demanded of that good stays constant. D) other things equal, when the price of a good rises, the quantity demanded of that good falls. E) other things equal, when the price of a good rises, the demand of that good rises.

Soru 15:

In 1970, Turkish Electricity Authority (TEK) was created by the Turkish Government as a state owned and operated monopoly responsible for electricity generation, transmission and distribution. In this sentence, a barrier in a market is examplified. What kind of barrier is this?

A) Having patents B) Having copyrights C) Ownership of a key resource D) Private or public (state-owned) monopolies established by the government E) Natural monopoly

Soru 16:

I. The firm can only increase labor to increase production, II. The firm can change the amount of capital it uses, III. Capital is fixed, IV. When more capital is used for a given amount of labor employed, output will increase. Which of the statements above is correct regarding the long run in production?

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

Soru 17:

Which of the following statement is not correct about the price elasticity of demand for the linear demand curves?

A) For the linear demand curves, price elasticity of demand falls as you move downward along the demand curve. B) at points on the demand curve with low price and high quantity, the portion of demand curve is inelastic (elasticity is less than 1), C) at points with high price and low quantities the portion of demand curve is elastic (elasticity is greater than 1). D) For the linear demand curves, price elasticity of demand is constant and equal to one along the demand curve. E) At the mid-point of the curve, the elasticity is equal to 1 indicating the unit elastic point of the demand curve.

Soru 18:

Which of the followings is not analysed by demand and supply theories?

A) Behaviour of buyers B) Behaviour of manufacturers C) Behaviour of sellers D) Determinants of demand E) Determinants of supply

Soru 19:

Which of the following is true regarding the price elasticity of demand?

A) The demand for a good is said to be elastic if the percentage change in quantity demanded is smaller than the percentage change in the price of a good. B) Goods without close substitutes tend to have more elastic demand than goods with close substitutes. C) Necessity goods tend to have an elastic demand. D) Goods that represent a relatively small portion of the total budget tend to have elastic demand. E) Goods tend to have a more elastic demand in the long-run than in the short-run.

Soru 20:

Which of the followings is not among the sources of monopoly?

A) Government regulations B) Ownership of a key resource C) Natural reasons D) Network externalities E) Consumer demand