Final Sınavı - Introduction to Economics 1

Soru 1:

Suppose that a firm's marginal revenue is 246 Turkish liras and its marginal cost is 110 Turkish Liras. Based on the information above, what is this firm's marginal profit?

A) 123 B) 126 C) 136 D) 356 E) 446

Soru 2:

Which of the following is not true about "task incidence and elasticity"?

A) The tax incidence shows who pays the tax B) The tax incidence shows how the tax burden is shared among buyers andsellers C) The tax incidence is not affected by whether the tax is levied on buyers or sellers. D) The burden of tax is shared by buyers and sellers E) what determines the tax incidence is the demand elasticities of price and supply

Soru 3:

What is average product of Labor?

A) Average product is the total unit production of a firm. B) Average product (AP), also called average product of labor (APL), is total product (TP) divided by the total quantity of labor. C) The change in the quantity of total product resulting from a unit change in a variable input, keeping all other inputs unchanged. D) The quantity of total output produced per unit of a variable input. E) Average product is useful for defining production capabilities at a specific level of input.

Soru 4:

What does the term willingness to pay mean?

A) The minimum price consumers will pay B) The maximum price consumers will pay C) The maximum price for a good in the market D) The minimum price for a good in the market E) The average price consumers will pay

Soru 5:

Which of the following is true regarding long run in a perfect competitive market?

A) Firms suffer an economic loss in the long run. B) Firms make a very large economic profit in the long run. C) In the long run there is no incentive to enter or exit the market. D) It is impossible for a firm to expand its production capacity in the long run. E) In the long run, each firm has a Price(P) = Maximum average cost (ACmax).

Soru 6:

Suppose that you buy a new smart phone. If you had not buy that phone you would have spent the money for taking a vacation. What term in economics is used for describing what you give up to get that phone?

A) The Opportunity Cost B) Production Possibilities Frontier C) Standard of Living D) Efficiency E) Equity

Soru 7:

What happens to monopolistically competitive firms in the long run when costumers start consuming new products instead of the old ones?

A) Supply curve facing an existing monopolistic firm increases and shifts to the right as new firms enter into the market. B) Demand curve facing an existing monopolistic firm decreases and shifts to the left as new firms enter into the market. C) Supply curve facing an existing monopolistic firm increases and shifts to the left as new firms enter into the market. D) Demand curve facing an existing monopolistic firm increases and shifts to the left as new firms enter into the market. E) Demand curve facing an existing monopolistic firm decreases and shifts to the right as new firms enter into the market.

Soru 8:

Which of the followings is a market structure where there are many firms that sell differentiated products?

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

Soru 9:

Which term below reveals the marginal rate of substitution of one good for another good?

A) The integral of a distribution function. B) The slope of budget constraint. C) The slope of an indifference curve. D) The length of budget constraint. E) The integral of indifference curve.

Soru 10:

I. Profit II. Labor III. Capital IV. Entrepreneurship V. Natural resources Which of the above are considered as the main factors of production?

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

Soru 11:

Which of the following refers to the best alternative that we give up when we make a choice or a decision?

A) Opportunity cost B) Absolute advantage C) Comparative advantage D) Marginal revenue E) Marginal cost

Soru 12:

.......... represents a situation among the interacting firms, each of which chooses their best strategy given the strategies that all the other firms have already been chosen. Which of the following completes the gap in the statement above?

A) Game theory B) Dominant strategy C) Nash equilibrum D) Monopolistic competition E) Collusion

Soru 13:

When Linda goes to a supermarket to buy some biscuits, she notices that there are two different brands with the same price; however, the package of brand X is 130 grams whereas brand Y's package is 100 grams. Naturally, she prefers brand X. which of the following is true about Linda's behavior in terms of the properties of indifference curves?

A) Goods are substitutable. B) Indifference curves cannot cross each other C) More goods are preferable to fewer goods. D) Indifference curves are everywhere dense. E) Indifference curves are always convex

Soru 14:

Which of the following can be described as the additional output produced when a small amount of additional labor is employed with all other inputs remaining the same?

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

Soru 15:

What does ‘allocative efficiency’ refer to?

A) An economic situation when the supplies excess the demand B) A situation when the social benefit equals the cost of production C) A situation in which production meets consumer preferences D) A level at which resources are used efficiently for maximum production E) A level at which additional amounts of a good can no longer be produced

Soru 16:

In which of the options all of the factors of production are given?

A) Labor B) Labor & Capital C) Labor & Money D) Land & Money E) Labor, Capital & Land

Soru 17:

Which of the followings is among the characteristics of a monopoly?

A) There are few firms. B) There are no barriers to entry to the market. C) There are many firms in the market. D) There are barriers to entry to the market in considerable number. E) Products have no close substitute.

Soru 18:

A firm has a unit of good it sells for 7 TL. It produces a second unit of the same good and sells it for 6 TL. Therefore, how much is the marginal revenue from the second unit?

A) 7 TL B) 5 TL C) 6 TL D) 1 TL E) No change

Soru 19:

New firms continue to enter the market until ______. Which of the following completes the statement above?

A) equilibrium prices start to increase B) external diseconomies are eliminated C) the demand for labor increases D) economic profits fall to zero level E) the market price of the good rises

Soru 20:

Which of the followings represents a situation among the interacting firms, each of which chooses their best strategy given the strategies that all the other firms have already been chosen?

A) Cartel B) Collusion C) Nash Equilibrium D) Oligopoly E) Dominant Strategy