Deneme Sınavı Soruları

I. Adverse selection arises when an informed individual’s decisions in the market affect adversely
uninformed market participation.

II.  Asymmetric information causes the adverse selection problem, a phenomenon in which there is a hidden characteristic problem.

III. Insurance companies offer the same premiums for their customers for insurance so adverse selection does not arise in the insurance markets.

What can be said to be true about adverse selection?

_____________ occurs when the market is not competitive and resulting total level of output is lower than the competitive level. The term refers to the combined loss from consumer and producer surpluses.

The figure shows the revenue and cost curves for the monopoly market. Which of the following is the equilibrium output that maximizes profits for the monopoly firm?

Which of the following is not one of the assumptions of perfect competition theory?

Which of the following is important for a typical firm before making a decision about the profit-maximizing output level?

Which of the following produces the optimal output level for a competitive firm in the short-run?

If long run average cost is constant across all output levels, what will this lead to? 

The person who has concave utility function relative to total wealth is said to be

Which of the following states that the value of excess demands in all markets in the model always adds up to zero?

Which of the following equations represents Walras' Law?

Which of the following is a market where the price is given and cannot be changed by individual action, there is no barrier to entry and exit, and a homogeneous good is produced?

Choose the option that completes the following sentence correctly.

"The term .......... equilibrium itself refers to a state of simultaneous equilibrium in all goods and factor markets."

1. if one firm has own the entire supply of any critical input or raw material
2. if one firm has technological knowledge by patents, know-how, copyrights, etc.
3. If there is an opportunity for huge cost advantages in large scales in any industry.  Which of the above are barriers to entry that create a monopoly?

Two functions with identical ordinal properties are called ........ monotonic transformations of each other.

At every point on the demand curve, which of the following condition holds?

What is the marginal rate of technical substitution (MRTS)?

......... is the level of satisfaction an individual receives from consuming goods and services.

I)  For giffen good, demand curve is downward sloped

II) For normal good, demand curve is upward sloped

III) For inferior good, demand curve is downward sloped

Which of the following is true for normal, inferior and giffen goods?

I) Demand is ELASTIC if the percentage change in the quantity is greater than the percentage change in
price making the absolute value of the price elasticity greater than 1.

II) Demand is INELASTIC if the percentage change in the quantity is less than the percentage change in
price, making absolute value of the elasticity between 0 and 1

II) Demand is UNITARY ELASTIC if the percentage change in the quantity is equal to the percentage
change in price, making the absolute value of the price elasticity equal to 1.

Which of the following is true for elasticity of demand?

The inverse demand function for a firm’s product is p(q)=700000e^-0.002q where q is the daily demand and p is the price. What is production level that maximizes the daily revenue?