Multiple Choice Questions 1. Economics is the study of choice under conditions of a) Demand b) Supply c) Scarcity d) Market 2.
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Multiple Choice Questions

1. Economics is the study of choice under conditions of

a) Demand

b)

Supply

c) Scarcity

d) Market


2. Opportunity cost is

a) the additional cost of buying an additional unit of a product.

b) a cost that cannot be avoided, regardless of what is done in the future.

c) the additional cost of producing an additional unit of output.

d) that which we forgo, or give up, when we make a choice or a decision.


3. If you own a building and you decide to use that building to open a restaurant,

a) there is no opportunity cost of using this building for a restaurant because you

own it.

b) there is an opportunity cost of using this building for a restaurant because it

could have been used in other ways.

c) there are no sunk costs involved in this decision.

d) the only cost relevant to this decision is the price you paid for the building.


4. After each of the economic terms listed below, place the appropriate letter indicat-

ing which denition applies:

Microeconomics: , Macroeconomics: , Circular Flow Diagram: , Mar-

ket Economy:

a) The study of economy wide phenomena including in

ation, unemployment and

economic growth

b) A visual model of the economy that shows how dollars 

ow from households

through markets to rms.

c) The study of how households and rms make decisions and how they interact

in markets.

d) An economy that allocates resources through the decentralized decisions of

many rms and households as they interact in markets for goods and services.


5. Which of the following is a normative statement?

a) Galatasaray won its 8th games this year after the match against Trabzonspor.

b) The Consumer Price Index rose three- tenths of one percent in May.

c) In January, the average temperature in Cesme exceeds the average temperature

in Bodrum.

d) Fenerbahe needs a better manager even though they scored 6 goals in the last

match.

e) Turkeys trade decit reached an all-time high last year.


6. Senay is considering attending a movie with a ticket price of $35. She estimates

that the cost of driving to the movie and parking there will be an additional $20.

In order to attend the movie, Senay has to take time o from his part-time job.

She estimates that she will lose 5 hours at work, at a wage of $6 per hour. Senays

total cost of attending the movie equals:

a) 35

b) 55

c) 85

d) 90

e) 105


7. A graph showing all combinations of two goods and services a society could produce

if it used all of its resources efficiently is the

a) Production possibility frontier.

b) Capital consumption frontier.

c) Lorenz curve

d) Circular-flow diagram.


8. The inputs that are used in the production process are labeled as factors of production. Which of the following below is a factor of production?

a) Land

b) Labor

c) Capital

d) All of the above

Refer to the information provided in Figure below to answer the following questions.


9. According to Figure 1, the point where only cars are produced is

a) A

b) B

c) D

d) E


10. According to Figure 1, which point cannot be obtained with the current resources

and state of technology?

a) C

b) A

c) D

d) F

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