Seçmeli Ara Sınav - Introduction to Economics 1

Soru 1:

About the sign of the price elasticity of demand which of the following statement is correct?

A) The sign of the price elasticity of demand can be negative or positive. B) The sign of the price elasticity of demand is always positive because of the law of demand. C) The sign of the price elasticity of demand is always negative because of the law of demand. D) The sign of the price elasticity of demand is always negative for normal goods, but positive for luxury goods because of the law of demand. E) The sign of the price elasticity of demand is always negative for luxury goods, but positive for inferior goods because of the law of demand.

Soru 2:

I. Consumer’s income II. Consumer’s time III. Rarity of the item IV. Price of the item Which of the above are among the factors that limit the consumer choice?

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

Soru 3:

Which of the following goods and services tend to have a more inelastic demand?

A) heating in winter B) educational services C) luxury items D) health services E) gasoline for car owners

Soru 4:

Which of the following affects consumer preferences the most in general?

A) The place where the product is sold B) The amount of the product in a package. C) The satisfaction of consumer on a product. D) The origin of the product E) The usefulness of the product

Soru 5:

Assume a good has positively sloped supply and negatively sloped demand. What happens to the market equilibrium when input prices for the aforementioned good increases?

A) Equilibrium price and quantity increases. B) Equilibrium price increases and equilibrium quantity decreases. C) Equilibrium price and quantity decreases. D) Equilibrium price decreases and equilibrium quantity increases. E) Equilibrium price stays the same and equilibrium quantity increases.

Soru 6:

Which of the given changes the relationship between quantity and price along the demand curve?

A) Price of the goods or services. B) Price of related goods or services. C) The income of the buyer. D) Tastes or preferences of the buyer. E) The expectation of the buyer.

Soru 7:

Assume that a 10 percent increase in the price of cigarettes causes a 15 percent decrease in the quantity demanded for cigarettes. What is the price elasticity of demand in this case?

A) 0.25 B) 0.5 C) 1 D) 1.5 E) 1.75

Soru 8:

Which of the following is not one of the non-price factors that lead to a shift in the supply curve?

A) Input prices B) Income C) Technology D) Expectations E) Number of sellers

Soru 9:

Which of the following statement is not true about the properties of indifference curves which are always convex?

A) The slope of the indifference curve represents the willingness of the individual to substitute one good for the other. B) This is also defined as the marginal rate of substitution (MRS), which refers to the amount of good X that is just sufficient to compensate the consumer for the loss of a unit of the good Y. C) Reflecting the principle of diminishing marginal utility, MRS of a good Y will decline as the good X is consumed more intensively relative to other goods Y. D) The slope of the indifference curve represents the ratio of relative prices. E) This means that as his or her consumption of good X increases, his or her valuation of good X relative to good Y will decline, and vice versa.

Soru 10:

I. One buyer or seller can determine the market price individually. II. There are numerous producers and consumers in the market. III. The extreme cases of this market can be monopoly and monopsony.Which of the above can be considered as the characteristics of ‘imperfect competition’?

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

Soru 11:

Which of the following cannot be counted among the properties of the indifference curves?

A) more goods are preferable to fewer goods—thus, bundles on indifference curves lying farthest to the northeast of a diagram are always preferred, B) goods are substitutable—therefore, indifference curves slope downward to the right (negatively sloped), C) indifference curves can cross each other, if they did, the rational ordering among preferences would not be violated. D) indifference curves are everywhere dense, E) the valuation of a good declines as it is consumed more intensively—therefore, indifference curves are always convex.

Soru 12:

The price of pistachios (antep fıstığı) has recently increased three times. This condition has led baklava producers to stop the production of pistachios baklava. Which of the following is the determinant of the supply of pistachios baklava in this example?

A) Technology B) Input prices C) Expectations D) Number of sellers E) Number of buyers

Soru 13:

I. Consumer surplus is the difference between the minimum amount a person is willing to pay for a good and the market price. II. Producer surplus is the difference between the price at which a firm sells its product and the cost of production. III. Total surplus from a market is the sum of consumer and producer surpluses. Which of the statements above is true in terms of consumer surplus and producer surplus?

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

Soru 14:

What are markets in which there exist only one buyer and many sellers called?

A) Univaraite B) Monopoly C) Oligopoly D) Monopsony E) Oligopoliy

Soru 15:

What does microeconomics examine?

A) The resources in limited quantities available that we can use to satisfy our needs and desires B) The government decisions about whether it should spend more on education and health services C) Society’s inability to produce all the goods and services people desire to have due to resource limitations D) The decision making behavior of the individuals, or households and the business firms E) Changes in economywide indicators that affect the whole society such as growth rate of total income

Soru 16:

I. If the demand is inelastic, the total revenue increases as a result of a rise in the price of the good. II. The total revenue decreases along with the price of the good if the demand is elastic. III. Price elasticity of demand is a variable factor that determines whether the total revenue will fall or not. Which of the statements above is true according to the relationship between the total revenue and price elasticity of demand?

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

Soru 17:

In which case the demand for the good is inelastic?

A) The consumers respond to a 7% increase in the price of a good with 10% decrease in their quantity demanded B) The consumers respond to a 9% increase in the price of a good with 13% decrease in their quantity demanded C) The consumers respond to a 29% increase in the price of a good with 7% decrease in their quantity demanded D) The consumers respond to a 7% increase in the price of a good with 7% decrease in their quantity demanded E) The consumers respond to a 5% increase in the price of a good with 10% decrease in their quantity demanded

Soru 18:

What is the term for the measure that shows how much one variable responds to changes in another variable?

A) theory of demand B) supply C) supply market D) elasticity E) consumer preferences

Soru 19:

How does an increase in income effects the budget constraint?

A) Budget constraint shifts to right. B) Budget constraint's slope increases. C) Budget constraint is not affected. D) Budget constraint's slope decreases. E) Budget constraint shifts to left.

Soru 20:

Which of the following is not a true statement about "consumer surplus"?

A) The market demand curve represents each buyer’s willingness to payfor that good from the higher prices to the lowest B) The behavior of the buyers in the market place is represented by the market demand function. C) Under the assumption of ceteris-paribus, a market demand curve shows howthe quantity demanded of a good varies as the price of that good varies. D) Each point on the market demand curve for a good represents the marginalvaluation of each consumer E) Willingness to pay tells us the maximum amount that a buyer will pay for a good or service