All Free Economics MCQs with Answers

• A. Freud,s theory that anatomy is destiny
• B. Mead,s theory of inherited criminality
• C. Cooley,s theory of original sin
• D. None of the above

Explanation: None of the listed statements correctly identifies a sociological theory of deviance: Freud's claim is psychoanalytic, while the…

• A. trauma
• B. anomie
• C. alienation
• D. anomaly

Explanation: Anomie is a state of normlessness in which people become detached from accepted rules and legitimate ways of behaving.

• A. is based on violence
• B. gains small amounts of money for its perpetrators
• C. is very costly to society
• D. is punished more severely than blue-collar crime

Explanation: White-collar crime is usually nonviolent occupational or business crime, but fraud and corporate offences can impose very large costs on…

• A. demand is elastic
• B. demand is inelastic
• C. there is aggregate demand
• D. exchange takes place

Explanation: If a substantial price reduction produces little additional buying, quantity demanded responds weakly to price, indicating inelastic…

• A. anomie
• B. alienation
• C. crime
• D. differentiation

Explanation: Crime is deviance that violates formal laws and can therefore attract legal punishment.

• A. anomie
• B. labeling
• C. transmission
• D. forgiveness

Explanation: When deviant behaviour becomes known to others, society may attach a deviant identity to the person through labeling.

• A. a person's marginal productivity
• B. whom one knows
• C. which skills one has
• D. innate talent

Explanation: In the marginal-productivity theory of distribution, a factor's income is linked to the value of its marginal product, meaning the extra…

• A. the market does not provide for satisfying public needs
• B. the market is not equitable favoring those with more resources
• C. the market makes no provision for protecting smaller participants
• D. all of the above

Explanation: A completely laissez-faire market may underprovide public goods, produce unequal outcomes, and fail to protect weaker participants from…

• A. clearance price
• B. equilibrium price
• C. pressure price
• D. a buyer's market

Explanation: At the intersection of supply and demand, the quantity supplied equals the quantity demanded, so there is no persistent surplus or…

• A. are totally free to pursue their goals
• B. are affected by prices and incomes
• C. try to maximize their worth
• D. try to maximize their labor

Explanation: Market participants respond to incentives, especially changes in prices and incomes, when deciding what to buy, sell, or produce.

• A. factor markets
• B. resource markets
• C. product markets
• D. abstract markets

Explanation: Firms sell finished goods and services in product markets, while they buy labour, land, capital, and other inputs in factor or resource…

• A. are unrelated concepts
• B. amount to the same thing
• C. are closely related to price
• D. are closely related to supply

Explanation: A need is a want or requirement, whereas demand requires both willingness and the purchasing power to buy a good.

• A. the nuclear family
• B. the extended family
• C. everyone who lives under one roof
• D. all of the above

Explanation: In basic microeconomics, a household is treated as the people living together who make consumption and resource-supply decisions, commonly…

• A. market forces
• B. key economic indicators
• C. thesis and antithesis
• D. causes of inflation

Explanation: Demand and supply are market forces because buyers' willingness to purchase and sellers' willingness to produce interact to determine…

• A. all participants get some satisfaction
• B. scarce resources are put into goods that are in demand
• C. economic output is distributed to those who can pay the price
• D. all of the above

Explanation: A market economy directs scarce resources toward goods consumers demand and distributes output mainly according to ability and willingness…

• A. Foreman
• B. Union official
• C. Stock holder
• D. CEO

Explanation: A foreman occupies an intermediate position between workers and higher management, so the role is difficult to classify strictly as either…

• A. partnership
• B. proprietorship
• C. trust
• D. corporation

Explanation: A corporation is a separate legal entity owned by shareholders, who may be numerous, absent from daily operations and protected by limited…

• A. everything needed for the production of goods and services including human energy
• B. everything found in the ground
• C. everything that is made by people
• D. none of the above

Explanation: Economic resources are the inputs used to produce goods and services, including human effort, natural materials, machinery and…

• A. must be combined in the production of goods and service
• B. must be used separately to produce goods and service
• C. have no function in the production of goods and service
• D. create a balance between humans and their environment

Explanation: Land, labour, capital and entrepreneurship are the four factors of production, and production normally requires their coordinated…

• A. Antitrust laws
• B. Increasing white-collar membership
• C. Expansion of the manufacturing sector
• D. Loss of membership

Explanation: Trade unions may face declining membership as industries shrink, employment patterns change and unionisation becomes less common in some…