Final Sınavı - Introduction to Economics 1

Soru 1:

Which of the following is true for a perfectly competitive market?

A) MR=P. B) MR>P. C) MR D) TC=TFC. E) TC=AC.

Soru 2:

.......... is an agreement among firms to charge the same price or decide on quantities in cooperation with each other. Which of the following completes the blank in the statement above?

A) Competition B) Collusion C) Profitability D) Revenue E) Output

Soru 3:

I. The price of the good II. The abundancy of the good III. The income of the individual IV. The tastes and preferences of the individual Which of the above can be considered as the main determinants of demand?

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

Soru 4:

Education services Health services Heating in the winter Which of the above has inelastic demand?

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

Soru 5:

Which of the followings refers to the state in which a seller should increase production up to the point where marginal revenue is equal to marginal cost ?

A) Total revenue. B) Profit maximization. C) Average revenue. D) Break-even point. E) Shut-down point.

Soru 6:

Which of the followings equals to the profit of a firm?

A) The total revenue plus total cost B) The total revenue minus total cost C) The total revenue divided by the total cost D) The total cost minus total revenue E) The total cost divided by total revenue

Soru 7:

Which of the following refers to a monopsonist market?

A) SpaceX B) TCDDY C) The Türk Telekom D) The only shop in a small town E) A large milk and dairy product firm

Soru 8:

What is the objective of a firm that produces a good or service in a market?

A) to maximize its profit, which is the difference between total revenue and total cost. B) to maximize its total revenue, which is the price times quantity. C) to maximize its profit, which is the difference between total revenue and average cost. D) to maximize its profit, which is the difference between average revenue and marginal cost. E) to maximize its profit, which is the difference between marginal revenue and marginal cost.

Soru 9:

"When a monopoly increases production by one unit, it must reduce the price it charges for every unit it sells, and this cut in price reduces the revenue on the units it was already selling." According to the information above, which of the following results is true?

A) A monopoly’s marginal revenue is less than its price. B) A monopoly’s marginal expense is less than its price. C) A monopoly’s marginal revenue is more than its price. D) A monopoly’s marginal expense is more than its price. E) A monopoly’s marginal revenue is less than its value.

Soru 10:

On what condition is the difference between total revenues minus total costs maximized?

A) When the marginal revenue of the last unit produced is close to its marginal cost B) When the marginal revenue of the last unit produced is more than its marginal cost C) When the marginal revenue of the last unit produced is lower thanits marginal cost D) When the marginal revenue of the last unit produced is equal to its marginal cost E) When the marginal revenue of the last unit produced is half its marginal cost

Soru 11:

Which of the following statements is not correct regarding the determinants of labor demand?

A) Technology always requires new labor with a specific set of skills. B) More consumer demand for a good increases the labor demand. C) Lower market price for a good decreases the demand for labor. D) Cheaper capital may be reason for firms to have less demand for labor. E) New competitors in a market increase demand for labor.

Soru 12:

I. Labor - Wage II. Capital - Rent III. Land - Interest In which of the options the correct pairing for the factor of production and its compansation for using it is given?

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

Soru 13:

Which of the following would possibly be a monopolistic market?

A) A large coffee firm in the country B) A bakery in a large city C) One of the kiosks in the city center D) The only shop in a small town E) An international software company

Soru 14:

The production cost of land The price of the good produced on the land The quantity and quality of the resources land is combined with The prices of the other resources that are combined with land Which of the above are among the factors that determine the demand for land?

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

Soru 15:

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

A) Supply is more elastic in the short-run than in the long-run. B) The higher the availability of inputs for production, the higher the elasticity of supply. C) The price elasticity of supply is smaller in the long-run than in the short-run D) The more easily sellers can change the quantity they produce due to availability of inputs, the smaller the price elasticity of supply. E) The supply of beachfront property in Istanbul Bosporus or Mediterranean coasts isharder to vary and thus more elastic than the supply of new cars or computers.

Soru 16:

Suppose a certain firm is able to produce 9834567 units of output per day when 157 workers are hired. The firm is able to produce 100928374 units of output per day when 158 workers are hired (holding other inputs fixed). What is the marginal product of the 158th worker?

A) 91093087 B) 91097807 C) 91093807 D) 91693807 E) 91093805

Soru 17:

What is the motivation of labor to devote work time and physical and mental effort to producing goods and services?

A) Wage B) Rent C) Interest D) Profit E) Output

Soru 18:

When does competition occur?

A) Competition occurs when each producer maximizes its profits by choosing its own price or quantity without consulting other firms. B) Competition occurs when firms charge the same price or decide on quantitiesin cooperation with each other. C) Competition occurs when people/firms/countries make decisions in situations in which attaining their goals depends on their interactions with others. D) Competition occurs when a firm chooses their best strategy given the strategies that all the other firms have already been chosen. E) Competition occurs when the monopolist’s average revenue from sales equals to the price.

Soru 19:

When MPL curve is above the APL curve, which of the following is true?

A) AVC curve stays above the MC curve B) AVC curve stays below the MC curve C) AVC curve equals to the MC curve D) TVC curve is a vertical line E) TVC curve is a horizontal line

Soru 20:

Which one of the followings is defined as the best alternative that consumers give up when they make a choice or a decision?

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