All Free Economics MCQs with Answers

• A. Encroachment
• B. Monotony
• C. Unipolarity
• D. Monopoly

Explanation: A monopoly gives one person or group exclusive control over supplying a particular good, service, or branch of trade.

• A. small units, including individual companies and small group of consumers
• B. Economics of homes
• C. Economics of stock market
• D. Economics of provinces

Explanation: Microeconomics studies individual decision-making units, such as households, consumers, firms, and particular markets.

• A. Rise in the price of an item for sale
• B. An amount added to cost price in calculating selling price
• C. Both of them
• D. All of them

Explanation: A mark-up is the amount added to the cost price to obtain the selling price, and it represents the resulting increase over cost.

• A. Limited company
• B. Incorporation
• C. Cooperative
• D. Corporation

Explanation: In a limited company, each shareholder's liability is restricted to the unpaid amount on their shares or the amount they agreed to…

• A. to make queue
• B. items are removed in inverse order
• C. turn by turn
• D. make space for new production

Explanation: LIFO means that the most recently added item is treated as the first one removed, so items leave in the reverse order of their entry.

• A. Letter of intent
• B. Letter of Credit
• C. Letter of Expression
• D. Papers of Landing

Explanation: A letter of intent is a written statement showing that the parties intend to enter into a later formal agreement.

• A. Free market economy
• B. Laissez faire also Laisser faire
• C. Open market economy
• D. Liberal market economy

Explanation: Laissez-faire advocates minimal government interference in commerce, allowing prices and production to be guided mainly by market forces.

• A. Payment made for the use of another person's money
• B. payment made for the use of bank's money
• C. Share in profit
• D. Devaluation in the currency

Explanation: Interest is the payment made by a borrower for using money belonging to another party, usually a lender.

• A. Hire and Fire
• B. Rent
• C. Transportation Changes
• D. Freight

Explanation: Freight is the charge paid for transporting goods by ship, rail, road, or air.

• A. A privilege or right officially granted by a person or group by a government
• B. Authorization granted to someone to sell or distribute a company's goods or service in certain area
• C. Territory or limits within which immunity, privilege or right may be exercised
• D. All of the above

Explanation: A franchise may mean a granted privilege, authorization to operate or distribute goods under a company's name, or the territory in which…

• A. Floor price
• B. Fixed price
• C. Bid price
• D. Basic price

Explanation: A price floor is a government-imposed minimum price, often intended to protect producers from prices falling below a viable level.

• A. FIFO (first in first out)
• B. LAFO (last in first out)
• C. First come First serve
• D. None of these

Explanation: FIFO assumes that the earliest inventory purchased is sold first, leaving the newest purchases in closing stock.

• A. To verify signature
• B. To verify the person holding cheque
• C. To sign one's name upon the back of cheque
• D. To sign one's name upon the front of cheque

Explanation: To endorse a cheque means to sign one's name on its back, usually to transfer it or authorize its payment.

• A. Divided Labor
• B. Closed shop
• C. Division of Labor
• D. Open shop

Explanation: Division of labor is the separation of production into specialized tasks performed by different workers or groups.

• A. legal instrument used to grand a right
• B. Something done
• C. legal instrument
• D. none of the above

Explanation: A deed is a formal legal instrument used to create, transfer, or grant a right, especially an interest in property.

• A. Saving Account
• B. Fixed account
• C. Current account
• D. Fluctuated account

Explanation: A current account is designed for frequent transactions and can generally be operated whenever the account holder wishes.

• A. cost plus
• B. Cost effective
• C. End price
• D. Consumer price

Explanation: Cost-plus pricing adds a predetermined profit margin to the cost of producing the good. This is why the resulting price is called cost plus.

• A. Cheap things
• B. Substandard things
• C. Economical in terms of the goods or services received for the money spent
• D. Free in terms of the goods or services received for the money spent

Explanation: Cost-effective means obtaining the greatest or suitable value in goods or services for the money spent.

• A. Company
• B. Corporation
• C. Cooperative
• D. Limited Company

Explanation: A corporation is a legally created organization treated as a separate entity from its members, which allows it to own property and conduct…

• A. Limited company
• B. Society
• C. Corporation
• D. Cooperative

Explanation: A cooperative is owned or managed by the people who use its facilities or services, such as consumer, producer, or credit cooperatives.