Seçmeli Ara Sınav - Introduction to Economics 1

Soru 1:

I. Which car brand to buy. II. How to reduce inflationIII. How many workers to hire. IV. Where to spend this summer holiday. V. How much to spend on advertisementWhich of the above decisions are considered as the subject matter of microeconomics?

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

Soru 2:

Which of the following refers to the situation when the slope of a negatively sloped convex indifference curves increases (becomes less negative) as we move down along the curve?

A) Diminishing marginal rate of substitution. B) Utility-Maximizing Rule. C) Completeness of preferences. D) The law of diminishing marginal utility. E) Indifference curves are bounded.

Soru 3:

If there is a decrease in the price of one of the complements, how the demand for the other good is affected?

A) There will be a decrease in the demand for the other. B) There will be an increase in the demand for the other. C) There will be a decrease in the supply for the other. D) There will be an increase in the supply for the other. E) The demand for the other would stay the same.

Soru 4:

"Producer surplus.............." Which of the following most appropriately completes the sentence above?

A) increases with the market price increase and vice-versa B) is the difference between the price at which a firm sells its product and the cost of production C) is equal to the half of the base times height of the triangle D) equals to the area below the demand curve and above the market equilibrium price E) is the difference between the maximum amount a person is willing to pay for a good and the market price

Soru 5:

What is inflation?

A) Large quantities of the national currency in circulation B) The increase in the general price level in the economy within a given period of time C) Slow growth in the quantity of money in circulation D) The effects of monetary and fiscal policies pursued by the government E) Large discrepancy in average income levels across countries

Soru 6:

If green tea and black tea are substitutes, what happens if the price for black tea increases

A) Quantity demanded of black tea does not change. B) Demand green tea does not change. C) Demand for green tea shifts left. D) Quantity demanded of black tea falls E) Demand for Green tea shifts down.

Soru 7:

______ is a legal maximum on the price at which a good or a service can be sold.

A) Price fixing B) Price floor C) Price ceiling D) Price control E) Price elasticity

Soru 8:

What is the combinations of quantities of two goods, namely X and Y, that a consumer can purchase with certain amount of income?

A) Budget constraint B) Price constraint C) Budget deficit D) Inflation E) Substitution constraint

Soru 9:

Which statement is not one of the underlying assumptions of perfectly competitive markets?

A) The good or service being exchanged is not the same across all sellers. B) There is a high number of potential buyers and sellers. C) All buyers and sellers act independently from each other D) The good or service being exchanged is thesame across all sellers E) Entry of new sellers into the market is notrestricted by any means.

Soru 10:

Which of the following is an example for normal goods?

A) Car B) Air travel C) Real estate D) White bread E) Cinema ticket

Soru 11:

Which of the following is not among the basic assumptions that economists make about the nature of the consumer’s tastes or preferences?

A) Preferences are complete: this means that the consumer is able to compare and rank all possible baskets. B) Consumer’s preferences are transitive. C) Consumers always prefer more of a commodity to less (i.e., non-satiation). D) An increasing marginal rate of substitution (i.e., concavity) E) A diminishing marginal rate of substitution (i.e., convexity)

Soru 12:

I. The income effect is the change in consumption that results when a price change moves the consumer along an indifference curve to a point with a different marginal rate of substitution. II. The substitution effect is the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve. III. The income effect may work in reverse direction for some types of goods known as inferior goods.Which of the statements given for the income and substitution effects are true?

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

Soru 13:

4. What does the Latin term “ceteris paribus” describe?

A) A positive relationship between the price of a good and the quantity of that good demanded B) An assumption which allows for a change in only one variable at a time C) A number of non-price factors that determine supply D) All determinants of demand assumed to be changing. E) The demand curves sloping downward

Soru 14:

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

A) The price elasticity of supply always has a negative sign. B) The supply of a good is said to be elastic if the quantity supplied changes less than the price changes. C) The higher the availability of inputs for production, the lower the elasticity of supply is. D) The steeper the supply curve, the larger the price elasticity and the flatter the supply curve, the smaller the price elasticity of supply. E) The price elasticity of supply is greater in the long-run than it is in the short-run.

Soru 15:

Which of the following refers to a situation in which the supply and demand equals to each other?

A) Equilibrium B) Income Effect C) Substitution Effect D) Shift in supply curve E) Shift in demand curve

Soru 16:

Which of the following factor does not influence the positioning of the demand curve on the Quantity - Price plane?

A) tastes and preferences, B) income, C) prices of related goods, D) price of the good E) population and expectations.

Soru 17:

Which of the following is an example for binary decision?

A) “Sell your car or keep it” B) “Buy a car or a house” C) “Have lunch or study” D) “Apply for an MBA degree or work” E) “Study economics or business administration”

Soru 18:

If public transportation is an inferior good and the fee for this service rises, then holding all else constant, what will happen?

A) Demand for public transportation will rise. B) Quantity demanded of public transportation will fall. C) Demand for public transportation will fall. D) Quantity demanded of public transportation will rise. E) Supply of public transportation will fall.

Soru 19:

Which of the following can be described as ‘the adjustments made to add to the total amount at the edge’?

A) Equity B) Efficiency C) Marginal change D) Opportunity cost E) Market economy

Soru 20:

An airline is selling a ticket at 300 TL of which average cost is 400 TL to a standby passenger. What can this airline be said to have primarily taken into consideration while making an economical decision?

A) If the price the passenger will pay is greater than the marginal cost or not B) The marginal benefit which the passenger will obtain C) The price which the other passengers have already paid D) If this will provide the airline with a chance for advertising or not E) The fact that making profit is not essential in such situations