Final Sınavı - Introduction to Economics 2

Soru 1:

What is the main reason for the continuing inflation of an economy?

A) Increase in money supply B) Decrease in taxes C) Increase in interest rates D) Changes in the capacity utilization rate E) Changes in the openness of the economy

Soru 2:

_____ is the percentage increase in the gross domestic product of nation from a period to another period of time.

A) Nominal GDP B) Real GDP C) Factor of production D) Production function E) Economic growth

Soru 3:

What does external equilibrium refer to?

A) It refers to the full employment of economy with price stability. B) It refers to the balance of payments equilibrium. C) It refers to the situation of concurrent equilibrium of the internal and external balance of an economy. D) It refers to the situation of either internal or external equilibrium in an economy. E) None of the above

Soru 4:

Which of the following is not the result of reduction in planned investment expenditures?

A) Increased money supply B) Increased price level C) Higher interest rate D) High government expenditures E) Low investment expenditures

Soru 5:

Which of the following is/are not a type of Money? I. coins II. banknotes III. demand deposits IV. cheques V. cryptocurrencies

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

Soru 6:

Which of the following is not a factor affecting investment decisions?

A) gross national income B) interest rate C) expected profit D) cost of capital goods E) capacity utilization

Soru 7:

One way of increasing the national saving is increasing the real interest rates. What is the other way to increase national savings?

A) Increasing the quality of education B) Applying expanded monetary policiy C) Raising real interest rate D) Encouraging the firms to put more investment E) Raising government savings

Soru 8:

Which of the following is not among the weaknesses of the of HDI?

A) The HDI allows us to compare the level of development of countries. B) It uses GDP per capita, but there is no indication of the distribution of income in the country. C) Development is largely about freedom, but the index does not directly measure this. D) Giving equal weight to the three main components is rather arbitrary E) The HDI index does not distinguish between different rates of development within a country

Soru 9:

In the figure, which of the following is the reason for shifting aggregate demand curve from AD 0 to AD 1 ?

A) Increase in money supply B) Increase in taxes C) Decrease in prices D) Increase in unemployment E) Decrease in government expenditures

Soru 10:

Which of the following factors affecting the firm’s production decisions does not cause the aggregate supply curve to shift?

A) Economic growth B) Cost shocks C) Central bank D) Natural factors E) Investment gap

Soru 11:

_____ is the quantity of money that economic agents want to hold.

A) Money supply B) Money demand C) Speculative demand D) Precautionary demand E) Deposit money

Soru 12:

Let’s assume; the prices are at a certain level and the central bank increases the money supply. the aggregate supply curve is constant According to above assumptions how equilibrium price (P) and equilibrium income level(Y) change?

A) decreases Y decreases B) P increases Y decreases C) P increases Y increases D) P does not change Y increases E) P increases Y does not change

Soru 13:

Which of the following system use currency depreciation and currency appreciation?

A) Unflexible exchange rate system B) Expanded monetary policy system C) Free riding system D) International trade system E) Flexible exchange rate system

Soru 14:

Which of the following does not cause to shift aggregate supply curve to the left?

A) Increasing input prices B) Increasing wages C) Favorable weather conditions D) Natural disasters E) Investment gap

Soru 15:

Which of the following shows the negative relationship between price level and output quantity?

A) Aggregate supply curve B) Aggregate expenditure curve C) Aggregate demand curve D) Investment demand curve E) Saving supply curve

Soru 16:

Which of the following is not one of the assumptions of the Solow Growth Model?

A) The economy consists of one sector producing one good which is used for either investment or consumption B) Since the economy is a closed one, then the saving is equal to investment C) The economy is always producing its potential which is the full employment level of output D) In the model, the rate of technological growth, population growth and the depreciation rate of capital are all determined exogenously E) It is closed economy with government

Soru 17:

If economy recovers more than required and there are signs of inflationary threats, what would monetary authorities do according to contractionary monetary policy?

A) Raise money supply B) Change discount rate C) Hold more reserves D) Sell transactions E) Increase interest rates

Soru 18:

Which of the following models answers the question: ”What’s the relationship between the long-run economic growth and the saving, population growth rate, and rate?”

A) The Solow Growth Model B) Standard Equilibrium Growth Model C) Endogenous Growth Model D) The Harrod-Domar model E) Proximate Growth Model

Soru 19:

Which of the following statement explains the reason for nominal growth rates are bigger than the real growth rates?

A) the difference represents the value changes of money B) the difference represents the price changes in the time period. C) the difference represents the different values of the physical capital D) the difference represents the growth rate of the country E) the difference represents the differences in climate conditions

Soru 20:

Which of the following is defined as the number indicating how many times a unit of money used in purchase of final goods and services?

A) Neutrality of money B) Equation of exchange C) Nominal income D) Velocity of money E) Precautionary demand