Final Sınavı - Introduction to Economics 1

Soru 1:

If a government increased the taxes on cigarettes from 50 % to 70 percent, what kind of rational effect would this change have on the economy of this country?

A) The demand for cigarettes in the society would decrease. B) The price of a packet of cigarettes would decrease by 20 %. C) The number of smokers would sharply increase boosting the economy. D) The cigarette companies would increase their own prices as well. E) The equity among the members of this economy would be sustained.

Soru 2:

“A desired item or outcome to a person is what that person has to give up to get that item or to achieve that outcome” refers to which following concept in economics?

A) Opportunity cost, B) Choice, C) Tradeoff, D) Exchange, E) Utility

Soru 3:

In economics, what is meant with the short run?

A) a time period up to a month, B) a time frame in which certain inputs cannot be changed, C) a time frame in which all inputs can be changed, D) a time frame in which only labor and capital inputs can be changed, E) a time frame in which the technology can be changed.

Soru 4:

Which of the following statements is not correct when monopolies are considered?

A) There can be multiple producers in monopolies. B) Monopolies act as price setters. C) Monopolies can affect the quantity of goods in the market. D) The market demand curve is open to effect from monopolies. E) Monopoly is an extreme form of market structure.

Soru 5:

Which of the followings defines the term marginal product of labor?

A) The increase in total output produced from additional unit of labor employed B) The demand for a factor of production C) The inputs used to produce goods and services D) The relationship between the factors of production that a firm uses and the output it produces E) The value of the production made by the last worker hired for the firm

Soru 6:

Which of the followings is not among the types of costs?

A) Average costs B) Total cost C) Fixed costs D) Revenue costs E) Variable costs

Soru 7:

What is the effect of an increase in interest rates on saving?

A) An increase in interest rates causes saving to increase due to substitution effect but to decrease due to income effect. Since both effects work in opposite directions, the total effect is ambiguous B) An increase in interest rates causes saving to increase due to income effect but to decrease due to substitution effect. Since both effects work in opposite directions, the total effect is ambiguous. C) An increase in interest rates causes saving to increase both due to income effect and due to substitution effect. D) An increase in interest rates causes saving to decrease both due to income effect and due to substitution effect. E) An increase in interest rates would not have any effect on saving.

Soru 8:

I. A firm can sell its products at any price higher than the market equilibrium price. II. One firm`s product is a perfect substitute for any other firm’s product. III. The main aim of a perfectly competitive firm is to maximize economic profit. Which of the above statements about a firm in a competitive market is true?

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

Soru 9:

The GSM market in Turkey composed of only a few firms and characterized by large economies of scale is an example of:

A) Perfect competition. B) Pure competition. C) Monopolistic competition. D) Monopoly. E) Oligopoly.

Soru 10:

Which of the following statement is correct about the price elasticity of demand?

A) It measures how much the quantity demanded (Qd) of a good changes when there is a change in the price of that good (P). B) It indicates that there is an inverse relationship between the price of a good and the quantity demanded of that good. C) It states that when the price of a good increases the quantity demanded of that good falls. D) The price elasticity of demand measures the price-sensitivity or responsiveness of producers. E) It measures how much the quantity demanded (Qdx) of a good changes when there is a change in the price of a substitute good (Py).

Soru 11:

A student decides to allocate an extra hour to review exam materials instead of watching TV. What change is this adjustment called in economics?

A) Supremacy B) Marginal C) External D) Invisible E) Zero-sum

Soru 12:

According to the information given in the above table, what is the ‘average revenue’ of this competitive firm?

A) 3 B) 4 C) 5 D) 6 E) 7

Soru 13:

How much would be the total revenue for 6 units of a good that a firm sells for 5 TL per unit?

A) 24 TL B) 25 TL C) 5 TL D) 30 TL E) 6 TL

Soru 14:

What are the factors of production Classical economists identify?

A) Labor and capital B) Labor, capital and land C) Labor, capital and investor D) Labor, capital and entrepreneur E) Labor, capital, entrepreneur and land

Soru 15:

I. Economic rent is the price paid for the use of land or natural resources whose supply is perfectly inelastic. II. Demand is the active determinant of economic rent. III. Supply can be an important factor in determining the economic rent. What can be said true about what determines rent differentials?

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

Soru 16:

Which of the followings refers to the additional revenue obtained by selling one more unit ?

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

Soru 17:

Which of the following is false regarding monopolistic competition?

A) Demand is downward sloping similar to the demand curve facing a monopolist. B) When monopolistically competitive firms enjoy positive profits, new firms enter into this profitable market. C) Each firm has a monopoly over the product it sells, but many other firms make similar products that compete for the same customers. D) Price is the only factor that determines consumers’ decisions in monopolistic competition. E) It is a market structure where there are many firms that sell differentiated products.

Soru 18:

Let I be the income of the consumer, X and Y be the only good in the economy with prices Px and Py. Additionally quantity of X is given on the horizontal axis of the budget constraint graph. What happens to the budget line if the price of good X changes as income level and Py remains constant?

A) Budget constraint tilts outward and gets flatter. B) Budget constraint tilts inward and gets steeper. C) Budget constraint does not change. D) Budget constraint shifts outward parallel to the initial line. E) Budget constraint becomes vertical.

Soru 19:

Which of the following can be described as the change in consumption that results when a price change moves the consumer along an indifference curve to a point with a different marginal rate of substitution?

A) The income effect B) The conventional demand curve C) The real interest rate change D) The price consumption curve E) The substitution effect

Soru 20:

Which of the following refers to a situation in which production meets consumer preferences ?

A) Economic efficiency. B) Long-run equilibrium. C) Firm equilibrium. D) Normal economic profit. E) Allocative efficiency.