All Free Economics MCQs with Answers

• A. government reaction
• B. supply and demand
• C. lack of labor
• D. goods and service

Explanation: An exchange system allocates goods and services through transactions between buyers and sellers, with supply and demand influencing prices…

• A. being in a football pool
• B. speeding
• C. robbery
• D. all of the above

Explanation: Robbery is a serious property crime and is classified as an index crime in traditional FBI crime statistics.

• A. an undiscovered teller who steals from his bank is still a deviant
• B. it does not take biology into consideration
• C. it discounts the power of anomie
• D. it is necessary to be realistic about people's behavior

Explanation: Labeling theory is criticized because an act may be deviant even when no authority discovers or labels it, such as an employee secretly…

• A. secondary deviance
• B. final deviance
• C. primary deviance
• D. sinful deviance

Explanation: Primary deviance is the initial or undiscovered rule-breaking that has not yet led to a deviant identity or social label.

• A. efficient but inequitable
• B. inefficient but equitable
• C. efficient and equitable
• D. a tenet of communism

Explanation: Payment according to productive contribution may allocate resources efficiently, but it does not guarantee equal or socially fair incomes…

• A. negatives
• B. externalities
• C. internalities
• D. tangentials

Explanation: Pollution and congestion impose costs on people who are not fully reflected in the market transaction, making them negative externalities.

• A. political liberals
• B. political independents
• C. political conservatives
• D. political freethinkers

Explanation: Laissez-faire means minimal government intervention and reliance on private markets, a position traditionally associated with political…

• A. manage large corporations
• B. strike
• C. bargain collectively
• D. regulate safety

Explanation: Organized labor primarily represents workers in collective bargaining over wages, hours, and working conditions.

• A. vice president
• B. specialist
• C. bureaucrat
• D. foreman

Explanation: A specialist develops expert knowledge in a limited or narrow field. A bureaucrat refers to an administrative official, while a foreman…

• A. is equitable
• B. rations products among consumers
• C. allows wealthy consumers to obtain more products
• D. only B and C

Explanation: The price system allocates scarce goods through prices: those able and willing to pay more can obtain more, while prices ration limited…

• A. the more of the product will be produced
• B. the less producers will manufacture to raise the price still more
• C. the more they go into debt forcing them to stop buying
• D. the more expensive the product becomes

Explanation: Greater willingness to pay represents stronger demand, which gives producers an incentive to expand output when resources and supply…

• A. concerns wage rates and labor supply
• B. is a political as well as economic issue
• C. is complicated by overlapping labor markets
• D. all of the above

Explanation: Labor's marginal productivity is used to analyze wages and employment, and real labor markets may overlap across occupations and regions.

• A. the ratio of gold to paper money
• B. economic laws
• C. prices and incomes
• D. the religious institution

Explanation: Prices and incomes limit what consumers and firms can buy, sell or produce, so market participants cannot pursue unlimited goals freely.

• A. a recession
• B. equilibrium
• C. equivalence
• D. abeyance

Explanation: Equilibrium occurs when the quantity supplied and quantity demanded are equal, leaving no inherent pressure for the market price to…

• A. everyone is called by a title
• B. the same as unemployment
• C. there is a decrease in polarization
• D. having theoretical knowledge in addition to training

Explanation: Professionalization involves specialized theoretical knowledge combined with practical training, usually leading to recognized expertise…

• A. Cultural and social
• B. Religious and educational
• C. Semantic and semitic
• D. Typically, American

Explanation: An economic institution is part of the wider social system and reflects a society's culture, including its norms about production…

• A. water space air
• B. earth wind fire
• C. animal vegetable object
• D. technology time efficiency

Explanation: Technology affects production methods, while time and efficiency affect how much output can be obtained from available resources.

• A. monopoly
• B. diversification
• C. planned obsolescence
• D. takeover attempt

Explanation: Buying a business in a different line of activity, such as a cigar company acquiring a pizza chain, is diversification.

• A. a free market for all
• B. oligopoly
• C. government control
• D. none of the above

Explanation: An oligopoly exists when a small number of powerful firms dominate an industry, so each firm's decisions affect its major rivals.

• A. gold and silver
• B. the means of production machines tools materials
• C. serfs
• D. precious spices

Explanation: Industrialisation made productive capital such as machines, tools and materials more important than land as the basis of ownership and…