Seçmeli Ara Sınav - Introduction to Economics 1

Soru 1:

What does 'a diminishing marginal rate of substitution' assumption imlpy?

A) A concave indifference curve B) A convex indifference curve C) A horizontal indifference curve D) A vertical indifference curve E) A linear indifference curve

Soru 2:

Which of the following refers to a graph which illustrates how much of a good firm is willing to sell at different prices?

A) Ceteris paribus B) Market supply curve C) Market demand curve D) Individual demand curve E) Individual firm’s supply curve

Soru 3:

For a price P1=100, quantity demanded of a good is Q1=20. Then the price increases, and it becomes P2=150. Quantity demanded decreases to Q2=8. The price elasticity of demand using the mid-point approach is approximately:

A) -7,8 B) 0 C) 10,3 D) -2,1 E) -1

Soru 4:

Frank plans to take his family away on holiday. Considering the fact that he has a crowded family, and he is the only person working in his family, he decides to book a bed and breakfast hostel. Which fundamental principle of consumer behaviors is applied by Frank?

A) Consumers make their decisions purposefully B) One good can be substituted for another. C) Consumers must make decisions without perfect information. D) Limited income necessitates choice. E) The law of diminishing marginal utility applies.

Soru 5:

Which of the following describes the market failure?

A) An action or an effort to produce or avoid an outcome B) Effects of a production or a consumption to bystanders C) Substantial influence of a single buyer or seller in a market D) Inability to allocate resources efficiently E) Inability to produce all the desired goods and services

Soru 6:

Inelastic demand always takes a value between zero and -1. Elastic demand has an absolute value greater than 1. Demand is inelastic when the percentage change in quantity demanded is smaller than the percentage change in price. Demand is elastic when the percentage change (decrease) in quantity demanded is larger than the percentage change (increase) in price. Which of these statements about the shape of demand curves and elasticity are true?

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

Soru 7:

Under ceteris paribus conditions, which of the following factor does determine the slope and the curvature of the demand curve?

A) changes in tastes and preferences, B) changes in prices, C) changes in prices of related goods, D) changes in income E) population and expectations.

Soru 8:

For a normal good, which of the following is true?

A) Income elasticity is zero B) Income elasticity is less than zero C) Income elasticity is greater than zero D) Price elasticity is zero E) Price elasticity is greater than zero

Soru 9:

What is illustrated by Phillippes curve?

A) Marginal revenue and marginal cost B) Cause of inflation and its harmful effects C) Purchasing power and high inflation D) Money supply and high inflation E) Tradeoff between inflation and unemployment

Soru 10:

8. Suppose that the income of a person who wants to buy a car has increased. If this person prefers to buy a higher priced car instead of the car which he/she decided to buy before the increase in his/her income, what good is the car previously decided to buy called?

A) Inferior B) Normal C) Complementary D) Of choice E) Ordinary

Soru 11:

For what type of goods the demand increases when income is higher and decreases when income is lower.

A) Substitute Goods B) Inferior Goods C) Complementary Goods D) Public Goods E) Normal Goods

Soru 12:

Which of the following statements is true regarding the market equilibrium graph above?

A) The price of the product increases because of changes in demand. B) The supply of the product increases despite the fall in the demand. C) The demand for the product decreases because of high prices. D) The price of the product decreases despite the fall in the supply. E) The supply of the product decreases because of a fall in prices.

Soru 13:

What is the difference between the price at which a firm sells its product and the cost of production?

A) Consumer surplus B) Producer surplus C) Total Surplus D) Market Efficiency E) Tax Incidence

Soru 14:

What is the property of a resource allocation of maximizing the total surplus received by the society?

A) Elasticity B) Efficiency C) Tax Incidence D) Price floor E) Price ceiling

Soru 15:

6. A manufacturing company determined the sum of all the quantities of a product demanded per period by all the buyers in the market. What demand can be said to have been determined?

A) Utility B) Individual C) Market D) Inferior E) Substitute

Soru 16:

People tend to buy inferior goods less when their income increases because ......... . Which of the following completes the sentence above correctly?

A) they are not easily found in the market B) they are not needed anymore C) they are already low in quality D) they are uninteresting to consumers E) they are not the sign of prosperity

Soru 17:

Which of the following types of market systems faces a perfectly elastic demand curve?

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

Soru 18:

Which of the following is a positive statement?

A) When the government sets unemployment insurance payments too generously, for instance, it reduces the rewards for hard work, and may demotivate job seekers as a result. B) Government policies designed to improve equity may reduce efficiency. C) When large quantities of the national currency are put in circulation, the value (or purchasing power) of the money falls. D) The government that faces a tradeoff should set its priorities by giving the proper weights to these two goals that sometimes conflict. E) A household may have to decide whether to change the car or furniture at home.

Soru 19:

Which of the following expression can represent the budget constraint facing an individual who has a fixed level of income (I) that can be used to buy two goods (X and Y) at fixed prices (PX and Py)?

A) Px+Py=I B) X+Y=I C) Px.X+Y=I D) Px.X+Py.Y=I E) Px/X+Py/Y=I

Soru 20:

Which of the following is true for microeconomics ?

A) It studies how a country’s economy as a whole is structured and works B) It studies the aggregate effects of various policies pursued by the government C) It studies the effects of monetary policies pursued by the government D) It studies the behavior and decisions of individuals or households and firms E) It studies the effects of fiscal policies pursued by the government