Multiple Choice Questions
1. Economics is the study of choice under conditions of
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
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-
a) The study of economy wide phenomena including in
ation, unemployment and
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
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
d) Fenerbahe needs a better manager even though they scored 6 goals in the last
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:
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?
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
10. According to Figure 1, which point cannot be obtained with the current resources
and state of technology?