Free Microeconomics MCQs with Answers

• A. Total utility of the good for consumption of the last unit
• B. Extra utility associated with consuming another unit of the good
• C. Utility associated with consuming an alternative good
• D. Consumer surplus associated with the consumption of an alternative good

Explanation: Marginal utility is the additional satisfaction gained from consuming one more unit of a good.

• A. Consumptive efficiency
• B. Production efficiency
• C. Allocative efficiency
• D. EquityCompare Credit Cards

Explanation: Pareto efficiency concerns efficient allocation, production, and consumption, but it does not judge whether the resulting distribution is…

• A. Unitary price elastic
• B. Relatively price inelastic
• C. Perfectly price elastic
• D. Perfectly price inelastic

Explanation: A nonsmoker has no intention of purchasing cigarettes, so the quantity demanded remains zero regardless of price.

• A. Horizontal
• B. Vertical
• C. Downward Sloping
• D. Upward Sloping

Explanation: A normal demand curve slopes downward because consumers generally buy more when price falls and less when price rises, holding other…

• A. Business by rich people
• B. Monopoly shared by few large sellers
• C. Just one supplier of an item
• D. None of the above

Explanation: An oligopoly is a market in which a small number of large firms supply most of the product, so each firm’s decisions affect the others.

• A. Adam Smith
• B. David Ricardo
• C. Malthus
• D. J. M. Keynes

Explanation: Adam Smith wrote An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776.

• A. Equal to 1
• B. Greater than 1
• C. Less than 1
• D. Equal to 0

Explanation: A horizontal price-consumption curve implies that the quantity response to price changes keeps total expenditure on the good proportional…

• A. Profit
• B. a change of supply
• C. a shift to the supply curve
• D. the law of supply

Explanation: The law of supply states that, other things remaining constant, producers offer more for sale when price rises and less when price falls.

• A. maintaining the class system
• B. encouraging social mobility
• C. promoting nationalism
• D. allowing the formation of a subculture and keeping children in school for a period of time

Explanation: Latent functions are unintended effects of schooling, such as creating subcultures and occupying children for a prolonged period.

• A. the masses
• B. a small elite
• C. productive persons
• D. the obviously intelligent

Explanation: Before industrialisation, formal education was costly and limited, so it mainly served a small elite such as nobles, clergy and…

• A. depth of religious feelings
• B. whether one believes in God or gods
• C. whether one participates in religious rituals
• D. a belief in heaven and hell

Explanation: Religiosity measures the depth or intensity of a person’s religious commitment, not merely whether the person believes in God or performs…

• A. the sympathetic interpretation of myths
• B. the rational system of ideas that explains a belief system
• C. a justification of the function of religion
• D. the rules of ritual observance

Explanation: Theology is the systematic and reasoned study of religious beliefs, doctrines and ideas.

• A. differentiation
• B. denomination
• C. institutionalization
• D. bureaucratization

Explanation: Institutionalization occurs when a leader’s personal charisma is converted into established rules, offices, rituals and routines that…

• A. Baptism
• B. Anglicanism
• C. Calvinism
• D. Lutheranism

Explanation: Weber linked Calvinist ideas, especially the calling, discipline and signs of election, with the spirit of modern capitalism.

• A. another name for atheism
• B. a fusion of Christianity and Marxism
• C. a doctrine of personal transcendence
• D. a branch of Roman Catholicism

Explanation: Liberation theology combines Christian teachings with Marxist-inspired analysis of poverty, exploitation and class inequality.

• A. income safety and deference
• B. life liberty and the pursuit of property
• C. survival and expressiveness
• D. control over nature and the denial of death

Explanation: Functionalist anthropology, especially Malinowski’s approach, treats survival and expressive or psychological needs as fundamental human…

• A. victims of child abuse become troubled adults
• B. the more severe the abuse the more extreme the later psychiatric symptoms
• C. not all abused children go on to abuse their own children
• D. all of the above

Explanation: Research links childhood abuse with troubled adulthood and generally finds that more severe abuse is associated with more serious later…

• A. includes physical and emotional neglect
• B. refers to a wide range of maltreatment
• C. has a victimization rate of 12.3 per 1,000 children
• D. only A B and C

Explanation: Child abuse is a broad category covering physical, emotional and neglectful maltreatment, and the cited victimization rate is part of the…

• A. is most popular among the 24-35 age group
• B. among working couples
• C. among college-educated high-income groups
• D. only A and B

Explanation: Cohabitation is especially common among adults aged roughly 24 to 35 and among working couples.

• A. a delay in the age of first marriage
• B. the increase of cohabitation
• C. the increase in the incidence of remaining single
• D. all of the above

Explanation: Marriage rates fall when people marry later, choose cohabitation instead of marriage, or remain single.