Final Sınavı - Introduction to Economics 2

Soru 1:

Which one of the following is true about transaction demand for money?

A) It is the quantity of money that economic agents want to hold with the intent of defraying unforeseen expenses. B) It is the quantity of money that economic agents want to hold with the intent of spending for goods and services. C) It is used for unexpected expenses. D) The reason of this kind of demand to occur is the money being the most liquid store of value. E) It is the quantity of money that economic agents want to hold because of price uncertainty of financial assets other than money.

Soru 2:

According to Harrod-Domar Growth model what is the reason for the time period of t, It = St?

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 3:

What is the direct exchange of goods or services for another without using any medium of exchange?

A) Barter B) Medium of exchange C) Fiat money D) Unit of account E) Commodity money

Soru 4:

What does aggregate demand curve show the relationship between?

A) Demand and price B) Price and production C) Price and inflation D) Demand and supply E) Inflation and investment

Soru 5:

Which of the following is used as a proxy for the measurement of the value of the economic activity?

A) Production speed B) Inflation rate C) GDP D) Interest rate E) Production cost

Soru 6:

For how many years has Turkey been suffering from inflation problem?

A) 10 years B) 15 years C) 20 years D) 25 years E) 30 years

Soru 7:

New protectionism refers to usage of the _____ restrictions.

A) Traditional trade B) import C) export D) non-tariff E) tariff

Soru 8:

When the production possibilities frontier and the consumption possibilities frontier of an economy are identical?

A) At the autarky condition B) At the open economy condition C) At the general equilibrium D) At the internal equilibrium E) At the external equilibrium

Soru 9:

What happens when there is a negative relationship between prices and aggregate demand?

A) Interest rates decrease B) Prices decrease C) Stocks increase D) Money demand increases E) Production decreases

Soru 10:

_____ refers to the situation where the net result of the “Current Account + Capital and Financial Account + Official Reserves Account + Statistical Discrepancy Account” equation is negative.

A) Currency devaluation B) Current account surplus C) Current account deficit D) Balance of payments surplus E) Balance of payments deficit

Soru 11:

Which one of the following is not true about economic development and economic growth?

A) Economic growth is a broader concept than economic development. B) Economic growth is the percentage change in GDP of a country from a year to another year. C) Economic development reflects social and economic progress. D) Economic growth is a vital and necessary condition for development, but it is not a sufficient condition as it cannot guarantee development. E) Economic development includes the improvements in the standard of living through the creation of jobs, the support of innovation and new ideas, the creation of higher wealth, and the creation of an overall better quality of life.

Soru 12:

By which factor does the indirect channel between money and the economy work?

A) Interest rate B) Money supply C) Unemployment rate D) Capital stock E) Capacity utilization rate

Soru 13:

Which of the following causes the aggregate demand curve to shift to the left?

A) Decrease in tax rates B) Increase in planned investment C) Decrease in money supply D) Increase in production E) Increase in expenditures

Soru 14:

Which one of the following is an example of bank created Money?

A) Deposit money B) Reserve money C) Quasi money D) Loan money E) Investment money

Soru 15:

Which one of the following infromation is not true?

A) Balance of payments (BOP) is the summary statement of all the economic transactions made by the foreign currency. B) International transactions of an economy are classified as credits and debits. C) Current account deficit refers to a situation where the net result of the Current Account is negative. D) Financial Account constitutes the properties that are not financial, like the patent rights, intellectual property rights and licenses, etc. E) Portfolio investments are financial properties and assets such as bonds, Treasury bills and stocks.

Soru 16:

_____ is/are the factor/s of production which exists in a greater proportion and with a relatively lower price in one country than the other country.

A) Factor abundance B) Factor intensity C) Heckscher-Ohlin theory D) Economies of scale E) Imperfect competition

Soru 17:

In order to boost economic growth which policies should be taken by governments?

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

Soru 18:

What does external equilibrium refer to?

A) A commodity or a service purchased from foreign sources B) A commodity or a service sold to foreign buyers C) The situation of concurrent equilibrium of the internal and external balance of an economy D) The full employment of economy with price stability E) The balance of payments equilibrium

Soru 19:

Which of followings is one of the usage forms of created income?

A) Consumption B) Government expenditures C) Interest rates D) Export E) Leakages

Soru 20:

Which of the following theories explain international trade by using factor intensity and factor abundance?

A) Theory of absolute advantage B) Theory of comparative advantage C) Standard theory of international trade D) Heckscher-Ohlin theory E) Linder theory