Final Sınavı - Introduction to Economics 1

Soru 1:

In perfect competition:

A) There is a small number of firms producing differentiated products. B) There are barriers to entry. C) The products have no close substitutes. D) There is only one firm in the market. E) Consumers are price takers.

Soru 2:

Which elasticity below measures the price-sensitivity or responsiveness of consumers?

A) Response Elasticity B) Income Elasticity C) Price Elasticity D) Cross-income Elasticity E) Long Form Elasticity

Soru 3:

Which of the following explanations does not belong to a financial market?

A) The forces of demand and supply in a financial market determines the interest rate. B) A financial market is where businesses get the funds that they use to buy capital. C) Capital goods (equipment, machines or structures) are exchanged in financial markets. D) Financial markets are the channels through which firms borrow financial resources to buy capital. E) In a financial market, while firms are the demanders of the funds, people are the savers and ready to lend their savings.

Soru 4:

.......... is the additional revenue that results from one more unit increase in the quantity sold. Which of the followings completes the gap in the sentence above?

A) Total revenue B) Average revenue C) Curved revenue D) Marginal revenue E) Competitive revenue

Soru 5:

Which one of the followings can be included in the determinants of labour supply?

A) Market Price B) Technology C) Prices of other Factors of Production D) Number of Firms in the Market E) Changes in Population

Soru 6:

Which of the followings refers to " the use of scarce resources—the labor force, natural resources and land—that will yield the highest possible amount of output or the production of what people demand using the least amount of input "?

A) Allocative efficiency B) Marginal social benefit C) Economic efficiency D) Marginal social cost of production E) Utility-maximizing

Soru 7:

Which one of the followings defines the decrease in the marginal product of a variable input?

A) Marginal product B) Increasing marginal returns C) Marginal product of labor D) Law of diminishing returns E) Total product of labor

Soru 8:

How we define the amount of maximum output that a firm can produce with different levels of labor for a given capital amount used?

A) Marginal product of labor B) Average product of labor C) Total product of labor D) Total product of capital E) Average product of capital

Soru 9:

In the case of unit elastic demand, how does an increase in price change the revenue and why?

A) Total revenue increases because the increase in revenue from higher price is larger than the decrease in revenue due to lower quantity. B) Total revenue does not change because the increase in the total revenue from higher price exactly offsets the reduction of the total revenue due to lower quantity. C) Total revenue increases because the higher price causes the revenue to increase and it does not have an effect on the quantity, as the demand is unit elastic. D) Total revenue decreases because the increase in revenue caused by higher price is smaller than the decrease in revenue due to lower quantity. E) The result is ambiguous because we can not precisely know if the increase in revenue due to higher price is larger, smaller or equal to the decrease in revenue due to lower quantity.

Soru 10:

Which of the followings can total revenue be defined as?

A) The total amount of money received by a seller, which is equal to average revenue times quantity sold. B) The total amount of money received by a seller, which is equal to price times quantity sold. C) The total amount of money received by a seller, which is equal to price times average revenue. D) The total amount of money received by a seller, which is equal to price times marginal cost. E) The total amount of money received by a seller, which is equal to price times marginal revenue.

Soru 11:

What is economic cost formula?

A) Economic Costs = Wage (w) x Labor (L) + Interest (r) x Capital (K). B) Economic Costs = Explicit Costs + Implicit Costs as monetary value of time, effort and other resources . C) Economic Costs = Interest (r) x Capital (K) x Quantity (Q). D) Economic Costs= Price (P) x Quantity (Q). E) Economic Costs= Total Revenue (TR) – Total Cost (TC).

Soru 12:

The additional revenue obtained by selling one more unit of a good is called:

A) Average revenue. B) Total revenue. C) Marginal revenue. D) Extra revenue. E) Profit maximizing revenue.

Soru 13:

I.A decrease in the market price II.A decrease in production costs III.An increase in the number of firms Which of the above is the factor that can cause the market supply curve to shift to the rightward?

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

Soru 14:

In which of the following is the meaning of scarcity given?

A) The resources that we can use to fully satisfy our needs and desires B) Society’s inability to produce all the goods and services people desire to have due to resource limitations C) Societies’ decisions on their priorities and managing their resources accordingly with the priorities they set D) All goods and services sufficient to make them available to everyone for free E) A technique which analyzes how individuals and societies decide on their priorities

Soru 15:

Which of the followings is a market structure with only one producer/seller of a good and it does not act as a price taker but as a price setter.

A) Oligopoly B) Monopoly C) Monopolistic competition D) Cartel E) Nash Equilibrium

Soru 16:

If a consumer's income is ?120 and the consumer only consumes X and Y goods. The price of good X is ?30 and the price of Y is ?6. What is the consumer's budget constraint?

A) 6X + 30Y =120 B) 30X + 6Y =120 C) 120X + 6Y =300 D) 30X + 120Y = 6 E) 6X + 6Y = 300

Soru 17:

9. Under the assumption of ceteris paribus, if an increase in the price of a product leads to an increase in the quantity supplied what is this called?

A) The law of Supply B) Market Demand C) Market Equilibrium D) Quantity Supplied E) Marginal Cost

Soru 18:

Which of the followings is not among the determinants for labor demand?

A) Technology B) Market price C) Cost of capital D) Number of firms in the market E) Taxes

Soru 19:

I. Firms pay wage to the labor they use in production. II. The compensation for the use of capital is rent. III. The price of using land is called interest. What can be said to be true for the given statements?

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

Soru 20:

Which of the following types of markets consists of many firms that sell differentiated products?

A) In oligopolies B) In monopolies C) In monopolistic competition markets D) In competitive markets E) In perfectly competitive markets