Introductıon to Economıcs I (ENG) — 2022-2023 YO Çıkmış Sınav

1. When both the price of a substitute and the price of a complement of commodity x rise, the demand for X -----. Which of the following completes the sentence above? A) rises B) falls C) remains unchanged D) remains unchanged if the commodity X is price elastic E) can rise, fall, or remain unchanged depending on the relative strength of the two opposing forces

2. Which of the following is the reason indifference curves are convex to the origin? A) The assumption of completeness of preferences B) Consumers' irrational behaviors C) The assumption that consumer preferences are transitive D) The principle of diminishing marginal rate of substitution E) The assumption that more goods are preferable to fewer goods

3. When the price of a substitute of commodity X falls, the demand for X- Which of the following completes the sentence above? A) rises B) remains unchanged C) falls D) remains unchanged if the commodity X is price inelastic E) remains unchanged if the commodity X is price elastic

4. All decides to spend two hours playing soccer rather than working at his job which pays $10 per hour. Ali's tradeoff is -- Which of the following completes the sentence above? A) nothing, because he spent $20 for the field fees to play soccer B) nothing, because he enjoys playing soccer more than working C) nothing, because it was a planned activity D) the $20 he could have earned working tor two hours E) the increase in skill he obtains from playing soccer for those two hours

5. What will be the effect of a decrease in labor supply on the equilibrium wage and employment? A) It increases the equilibrium wage but employment decreases B) It decreases the equilibrium wage and increases employment C) It increases the equilibrium wage and employment D) It increases the equilibrium wage and employment does not change E) It decreases the equilibrium wage and employment