All Free Economics MCQs with Answers

• A. production depends on supply and demand
• B. consumers create demand
• C. producers supply what is demanded
• D. all of the above

Explanation: Consumer sovereignty means that consumer demand guides what firms produce, while producers respond by supplying the goods consumers want.

• A. Public
• B. Private
• C. Communal
• D. Indian

Explanation: Clan land that members may use but cannot individually sell is held by the group rather than by the state or one private person.

• A. the amount of each commodity that can be produced given available resources
• B. unlimited production of one commodity
• C. limitless output of commodities
• D. none of the above

Explanation: The production possibilities frontier shows the maximum attainable combinations of two goods with given resources and technology.

• A. land
• B. capital
• C. labor
• D. time

Explanation: Land as a factor of production includes naturally occurring resources and material objects, such as soil, forests and minerals.

• A. must always be limited
• B. maintains and fuels demand
• C. is not a factor
• D. is viewed unfavorably

Explanation: In industrial economies, consumption creates demand for goods and services, encouraging firms to continue production and investment.

• A. truth
• B. property
• C. happiness
• D. justice

Explanation: The concept of property determines who may own, control and use resources, so it strongly shapes an economic system.

• A. median
• B. mode
• C. moot
• D. mean

Explanation: Adding all observations and dividing by their number gives the arithmetic mean, commonly called the average.

• A. a feature of Adam Smith,s Wealth of Nations
• B. the belief God exhibited by the Puritans
• C. the fact that prayer results in help
• D. a belief in ghosts prevalent in the early Middle Ages

Explanation: Adam Smith used the “invisible hand” in The Wealth of Nations to describe how individuals pursuing their own interests can unintentionally…

• A. create abuse
• B. stimulate government control
• C. stimulate economic growth as each individual tried to maximize profits
• D. stifle economic growth as the markets would be flooded with merchandise

Explanation: Smith argued that private ownership gives individuals an incentive to pursue profit, and competition can direct those efforts toward…

• A. Differential association
• B. Anomie
• C. Labeling theory
• D. Gang imitation theory

Explanation: Differential association holds that deviant behavior is learned through interaction with others who model or support it.

• A. chemotherapy
• B. hypnotherapy
• C. shock therapy
• D. behavior therapy

Explanation: Behavior therapy treats problematic behavior by conditioning responses through rewards, punishments, and reinforcement.

• A. lack of legitimate means to attain group goals
• B. mental retardation
• C. neurosis
• D. wild mood swings

Explanation: For Merton, anomie arises when society promotes goals but access to legitimate means of achieving them is unequal or blocked.

• A. neurosis
• B. psychosis
• C. halitosis
• D. prognosis

Explanation: Neurosis is an emotional or psychological disorder in which contact with reality and ordinary functioning are generally retained.

• A. shows what is proper behavior
• B. helps group cohesiveness
• C. promotes social change
• D. all of the above

Explanation: Deviance can clarify acceptable conduct, strengthen group solidarity against those seen as outsiders, and stimulate social change by…

• A. Joan of Arc
• B. Mozart
• C. The Hell,s Angels
• D. People with high IQs

Explanation: The Hells Angels have commonly been presented in sociology as a deviant group because their activities and norms conflict with dominant…

• A. signify a weakness in its development
• B. are instrumental in cementing the mother-infant bonding
• C. should be ignored or the infant will be spoiled
• D. are natural in all mammals

Explanation: An infant's cries attract the caregiver's attention and help establish repeated interaction, making them important in mother-infant…

• A. the peer groups
• B. the mass media
• C. the day-care center
• D. child psychotherapy

Explanation: Day-care centres increasingly perform regular childcare and socialization functions that were once carried out almost exclusively by the…

• A. universal validity
• B. limited applicability to technologically advanced societies
• C. the desire for equality is peculiar to democratic nations
• D. post conventional morality is a luxury few cultures and societies can afford

Explanation: Kohlberg proposed a universal sequence of moral reasoning stages, although critics have questioned how well the later stages apply across…

• A. ethical dilemmas
• B. opportunities for self-transcendence
• C. crises of self-definition
• D. all of the above

Explanation: Erikson described each psychosocial stage as a crisis involving a developmental conflict, and self-definition is central to these…

• A. behavior based on sexual drives
• B. thinkers prior to Freud who anticipated his ideas
• C. thinkers opposed to psychoanalysis
• D. thinkers influenced by Freud who have modified his ideas

Explanation: Neo-Freudians accepted Freud’s influence but revised or extended his ideas, often giving greater importance to social, cultural, or…