Free Microeconomics MCQs with Answers

• A. age
• B. sex
• C. wealth
• D. all of the above

Explanation: Social ranking can be influenced by age, sex, and wealth, depending on the society and its norms.

• A. coercion
• B. violence
• C. power
• D. force

Explanation: Power is the capacity to influence or control another person's or group's actions, even without that person's consent.

• A. illness
• B. abnormality
• C. mental defects
• D. all of the above

Explanation: The medical model treats deviance as arising from an individual condition such as illness, abnormality, or mental defect.

• A. neuroses
• B. sociopathology's
• C. psychoses
• D. all of the above

Explanation: Psychoses are severe mental disorders involving a substantial loss of contact with reality and may require hospitalization or…

• A. were popular during the first half of the 20th century
• B. agree on the causes of deviance
• C. are strongly supported scientifically
• D. explain all types of deviance

Explanation: Biological explanations of deviance were especially influential in the first half of the twentieth century, although modern research does…

• A. considered normal by some antisocial individuals
• B. caused by abnormal chromosomes
• C. learned through interaction with others
• D. the result of social deprivation

Explanation: Differential association theory holds that deviant behavior is learned through interaction with others, including learning techniques and…

• A. illegal drug use
• B. Copyright infringement
• C. Prostitution
• D. Truancy

Explanation: Truancy refers to a child's unauthorized absence from school, so it normally cannot be committed by an adult.

• 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.