Seçmeli Ara Sınav - Introduction to Economics 1

Soru 1:

I. The marginal rate of substitution is the maximum amount of another good that a person is willing to give up to obtain one additional unit of the good. II. Two goods are perfect complements when the marginal rate of substitution of one good for the other is constant. III. Two goods with right-angle indifference curves are perfect substitutes such as left and right shoes. Which of the given statements about marginal rate of substitution are true?

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

Soru 2:

What does 'the law of diminishing marginal utility' mean?

A) The additional utility derived from consuming successive units of a product will eventually increase as the rate of consumption increases. B) The additional utility derived from consuming successive units of a product will stays the same as the rate of consumption increases. C) The additional utility derived from consuming successive units of a product will be zero as the rate of consumption increases. D) The additional utility derived from consuming successive units of a product will eventually decline as the rate of consumption increases. E) The additional utility derived from consuming successive units of a product will be infinite as the rate of consumption increases.

Soru 3:

Which of the following statements is true about the total revenue from sales in case of price changes of goods?

A) If demand is elastic, an increase in price causes total revenue to increase. B) If demand is elastic, a decrease in price, causes total revenue to decrease. C) When demand is inelastic, an increase in price cause total revenue to decrease. D) When demand is inelastic, an increase in price causes total revenue to stay the same. E) If demand is elastic, an increase in price causes total revenue to decrease.

Soru 4:

Which of the following factor cannot be listed as one of the determinants of the Price Elasticity of Demand?

A) whether close substitutes are available, B) the good is necessity of luxury for the consumer, C) share (weight) of the good’s cost in the consumers’ budget, D) the time period. E) The importance of being important.

Soru 5:

Production technique A allows a firm to produce more goods than technique B without increasing the amount of inputs and energy used, what term is used to describe technique A in this situation?

A) Efficiency B) Equity C) Availability D) Frontier E) Edge

Soru 6:

Which of the following is true?

A) Demand is elastic when the percentage change in quantity demanded is smaller than the percentage change in price. B) Inelastic demand always takes a value between zero and -1. C) Elastic demand always takes a value between zero and -1. D) Ineastic demand has an absolute value greater than 1. E) Demand is inelastic when the percentage change in quantity demanded is larger than the percentage change in price.

Soru 7:

If a demand curve is vertical, which of the following statement is correct about its slope and its price elasticity?

A) If the demand curve is vertical, its slope and its price elasticity is infinite, B) If the demand curve is vertical, its slope is zero but its price elasticity is infinite, C) If the demand curve is vertical, its slope and its price elasticity is zero, D) If the demand curve is vertical, its slope and its price elasticity is equal to one, E) If the demand curve is vertical, its slope infinite but its price elasticity is zero.

Soru 8:

Which of the following statement is correct about the slope and the shape of the demand curves?

A) Demand curves are downward sloping to reflect the negative relationship between the price and quantity demanded. Moreover, they are normally convex to the origin. B) Demand curves are upward sloping to reflect the positive relationship between the price and quantity demanded. Moreover, they are normally convex to the origin. C) Demand curves are upward sloping to reflect the positive relationship between the price and quantity demanded. Moreover, they are normally concave to the origin. D) Demand curves are downward sloping to reflect the positive relationship between the price and quantity demanded. Moreover, they are normally U-shaped. E) Demand curves are downward sloping to reflect the non-existence of the scarcity problem. Moreover, they are normally convex to the origin.

Soru 9:

Which blue point on the indifference curve above indicates the highest level of consumption?

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

Soru 10:

In a two good economy with goods X and Y and income level I, which of the following represents the equation for a budget constraint?

A) Px.Y + Py.X = I B) Px.X + Py.Y = I C) w.L+r.K=C D) w.K+r.L=C E) Y=C+I+G+NX

Soru 11:

In which of the following situations is the service provided by product markets used?

A) When you buy a land. B) When you buy a yacht. C) When you buy a new car. D) When you buy a new sofa. E) When you buy a hamburger.

Soru 12:

I. Limited income necessitates choice. II. One good cannot be substituted for another. III. The law of diminishing marginal utility applies. Which of the statements are true for consumer behavior?

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

Soru 13:

Which choice among the following is not a possible cause of market failures?

A) Positive externalities B) Market power C) External costs D) Inequity E) External benefits

Soru 14:

Which of the following happens when Marginal Rate of Substitution (MRS) happens?

A) Consumer starts investigating alternative products due to his or her limited budget. B) Consumer shifts from one product to another without questionning. C) Consumer's brand loyalty towards some brands increase consciously. D) When a consumer’s consumption increases, his or her openness to other products will increase as well. E) When a consumer’s consumption of good X increases, his or her valuation of good X relative to good Y will decline.

Soru 15:

Which blue point shows the equilibrium in this mobile phone market?

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

Soru 16:

Minimum wage is an example of:

A) Price ceiling. B) Price floor. C) Tax incidence. D) Consumer surplus. E) Market efficiency.

Soru 17:

Which of the following illustrates how much of a specific good an individual or household would be willing to buy at different prices?

A) Demand curve B) Supply curve C) Aggregate demand D) Aggregate supply E) Production possibility frontier

Soru 18:

Assume that you increase the total number of meatballs eaten from 10 to 11. What is the ' marginal ' increase in this example?

A) 1 B) 10 C) 11 D) 0.10 E) 0.11

Soru 19:

Which of the goods or services below is expected to have a large income elasticity?

A) Bread B) Dental care C) Jewelry D) Clothing E) Water