Ünite Sınavı Soruları

Which of the following is NOT true of returns to scale?

What can be said to be true about efficiency?

In which type of firms is the liability of the owners are limited to capital invested?

What is the marginal technical rate of substitution for q = K²L at K=2 and L=5?

Which of the following is/are true of production function?

1. Production function is the functional relationship between the quantities of output and inputs
2. Production function determines the behavior of a firm
3. There are different types of production functions and the choice depends on the characteristics of technology and the modeling approach under consideration
4. For sectoral production functions, only gross output is used as the output measure.

Which of the following is the outcome of neutral technological change?

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

I. It is the dominant theory in economics. 

II. It considers the firm as a “black box” and ignores how the decisions are made within the firm.

III. The firm has many objectives, including profit maximization.

What can be said to be true about the neo-classical theory of the firm?

Which of the following defines the relationship between actual output and potential output?

I. In the case of labor augmenting change, capital becomes more productive.

II. In the case of neutral change, total factor productivity increases.

III. In the case of capital augmenting change, labor becomes more productive.

What can be said to be true about technological changes?

What is a business organization under a single management that makes, buys and sells goods and services in exchange for money?

I. The evolutionary theory of the firm combines the behavioral theory with the Schumpterian idea
of innovation and suggests that firms try to be more profitable but they cannot maximize profit
because of the lack of perfect information and computational capability

II. Compatible with the perfect information assumption, it is explicitly recognized that firms have perfect information, and they are excluded from the learning and innovation processes. 

III. The evolutionary theory also assumes the satisficing behavior: firms adopt certain decision rules (“heuristics” or “routines”) to make decisions, and as long as they earn a satisfying level of profit, they do not search for new rules.

What can be said to be true about the evolutionary theory of the firm?

I. It criticizes the profit maximization assumption as unrealistic and proposes an alternative theory based on empirical observations of actual decision-making processes in business firms.

II. It suggests the firms would certainly prefer to earn more profit, but they cannot maximize profits. 

III. Managers have all the information and the computational capability necessary to maximize profits. 

What can be said to be true about the behavioral theory of the firm?

Which of the following theories assume(s) that the profit maximization assumption is unrealistic?

When should the size of a company growth be stopped?

Which of the following are true of the elasticity of substitution?

1. The elasticity of substitution measures the curvature of the isoquant.
2. The elasticity of substitution is equal to the percentage change in the ratio between two inputs.
3. The elasticity of substitution shows the proportional change in the KL ratio in response to one percentage point change in MRTS.
4. The elasticity of substitution measures percentage change in the ratio of capital to labor in response to a change in relative prices (the price ratio of capital to labor).

I. Modern capitalism is characterized by large companies where a large number of small shareholders own the company, and the company is run by professional managers. 

II. The owner cannot replace a manager if they fail to maximize profit, but because of information asymmetries, the managers can pursue other objectives for their own interests. 

III. The managerial theory of the firm says that managers are interested in their own utility, not the profit of the firm. 

What can be said to be true about the managerial theory of the firm?

Which of the following are true for marginal rate of technical substitution (MRTS)?

1. MRTS is defined as the rate at which one input is substituted for another while the output is constant
2. MRTS depends positively on the capital labor ratio
3. MRTS is equal to the ratio between changes in the quantities of inputs
4. when the MRTS depends on only the ratio of the inputs (K/L), the production function is called “homothetic”

What is the Production function?

Which of the following is/are the reason(s) why the behavior of firms important? Why is it important to know how firms behave?

1. to predict the effects of productivity growth on the levels of output, prices, and employment
2. to analyze why there are only a few firms in a given sector
3. to analyze how the income distribution may change as a results of a decline in the number of firms in the market