Final Sınavı - Introduction to Economics 2

Soru 1:

Which of the following is true according to fractional reserve banking system?

A) Banks hold an amount of cash more than deposits. B) Central bank controls the quantity of money. C) Banks create money by collecting deposits. D) Central bank controls leakages. E) Banks hold less reserves than total liabilities.

Soru 2:

Which one of the following is not true about the production function?

A) It an expression that relates the total output produced to the quantities of inputs used. B) It includes physical capital, labor and natural resources C) It is one of the factors that determine how much an economy can produce. D) The production function slopes upward, meaning it is positively slope. E) The slope of production function becomes flatter as capital input rises.

Soru 3:

Which of the following is defined as the quantity of money that economic agents want to hold with the intent of spending for goods and services?

A) Transaction demand for money B) Demand deposits C) Money supply D) Speculative demand for money E) Precautionary demand for money

Soru 4:

According to Keynesian economists, why is the supply curve is horizontal?

A) The economy is underemployment GDP level. B) The economy is at a low level of production. C) The economy is always at full of employment. D) The demand is in decrease. E) Stabilization policies are effective.

Soru 5:

Which of the following shows the effect of the implementation of contractionary fiscal policy in the economy?

A) G↓ → AD↓ B) G↓ → AD↑ C) T↑ → AD↑ D) T↓ → AD↓ E) G↑ → AD↓

Soru 6:

Which of the following is/are among the functions of money? I. It serves as a medium of exchange II. It serves as a unit of account III. It serves as a store of value IV. It serves as a complement to barter

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

Soru 7:

What happens when the general price level in the economy either changes very slowly or does not change at all?

A) Price stability B) Inflation C) Production stability D) Stagflation E) Cost-push inflation

Soru 8:

Which one of the following is not one of the criticisms against the use of HDI to represent the economic development?

A) The HDI index does not distinguish between different rates of development within a country such as between urban and traditional rural communities. B) Giving equal weight to the three main components is rather arbitrary. C) Development is largely about freedom, but the index does not directly measure this. D) It uses a scale to rank the nations in terms of development. E) It uses GDP per capita, but there is no indication of the distribution of income in the country.

Soru 9:

The balance of payments equilibrium.is called _____.

A) internal equilibrium B) general equilibrium C) external equilibrium D) international equilibrium E) aggregate equilibrium

Soru 10:

Which economic theory was developed by Keynes?

A) Equilibrium B) Classic model C) Microeconomics D) Cyclical model E) Macroeconomics

Soru 11:

Which of the following are common assumptions in Harrod-Domar and Solow models?

A) The economy is a closed one B) Some firms are able to invest C) Households are for labor only D) Labor’s quality is low E) Capital flow is low

Soru 12:

Which of the following is considered to be the most important cause of continuous price increases?

A) Increasing aggregate demand for intermediate goods B) Increasing input prices in the production process C) Increasing interest rates in the economy D) Increasing fixed costs for the productive units in the economy E) Accommodating monetary policy followed by the central bank

Soru 13:

The ratio of a country’s export price index to its import price index is called __________.

A) export commodity B) absolute advantage C) autarky D) terms of trade E) internal equilibrium

Soru 14:

What is “aggregate demand”?

A) The curve that shows the relationship between general price level and production level B) The total amount of goods and services demanded at various price levels in an economy C) The total amount of goods and services produced at various price levels in an economy D) The curve showing the relation between the total amount of production and prices offered by all firms in an economy E) The price level at which the aggregate demand is equal to aggregate supply

Soru 15:

What is the terminology used for inflation caused by increasing aggregate demand?

A) Stagflation B) Cost-push inflation C) Tax income D) Expenditure E) Demand-pull inflation

Soru 16:

………………………….. is the situation in which the general price level in the economy either changes very slowly or does not change at all. Which one of the following completes the sentence above?

A) Price stability B) Input stability C) Output stability D) Production stability E) Consumption stability

Soru 17:

Which of the following best completes the sentence below? “ _____ is/are determined by central bank and indicates the quantity of reserves that banking system holds against their liabilities.”

A) Expansionary (loosening) monetary policy B) Contractionary (tightening) monetary policy C) Discount rate D) Required reserved ratio E) Open market operations

Soru 18:

Which of the following is defined as an asset which has a high liquidity but cannot be used directly in payments?

A) Commodity money B) Near money C) Demand deposits D) Liquidity E) Fiat money

Soru 19:

_____ refers to the level of the capital labor ratio that maximizes the consumption per worker in the steady state.

A) The marginal product of labor B) Steady state consumption C) Steady-state saving D) Steady-state investment E) Golden Rule capital labor ratio

Soru 20:

Which of the following is not one of the main functions of Central Bank?

A) Serving as the Distributor of Money to People in Need B) Ensuring Stability in Money Markets C) Serving as the Lender of Last Resort D) Serving as the Banker for Banks E) Performing Banking Transactions of the Government