Free Microeconomics MCQs with Answers
1,742 Microeconomics MCQs from Economics, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Last updated
1,742 questions · page 44 of 88
- A. The impact on both price and quantity is ambiguous
- B. Price will decrease, quantity is ambiguous.
- C. price will increase, quantity will decrease
- D. price will increase, quantity is ambiguous.
- E. Price will increase, quantity will increase
Explanation: Buyers expecting a higher future price increase current demand, while sellers hold back current supply, so price rises from both shifts.
Correct answer: price will increase, quantity is ambiguous.- A. price will decrease, quantity is ambiguous
- B. The impact on both price and quantity is ambiguous.
- C. Price will increase, quantity will increase
- D. price will increase, quantity will decrease
- E. price will increase, quantity is ambiguous.
Explanation: The frost shifts supply left, while stronger tastes for orange juice shift demand right.
Correct answer: price will increase, quantity is ambiguous.- A. the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.
- B. the equilibrium quantity to rise and the equilibrium price to rise
- C. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous
- D. the equilibrium quantity to rise and the equilibrium price to fall
- E. the equilibrium quantity to rise and the equilibrium price to remain constant
Explanation: An increase in both supply and demand raises equilibrium quantity because both shifts push quantity upward.
Correct answer: the equilibrium quantity to rise and the equilibrium price to fall- A. there is a shortage and the price will fall
- B. the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged
- C. there is surplus and the price will rise
- D. there is a shortage and the price will rise
- E. there is a surplus and the price will fall
Explanation: At the equilibrium price, buyers wish to purchase exactly the amount sellers wish to sell, so there is neither a shortage nor a surplus…
Correct answer: the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged- A. there is a surplus and the price will rise
- B. there is a shortage and the price will fall
- C. there is a shortage and the price will rise
- D. The quantity demanded is equal to the quantity supplied and the price remains unchanged
- E. there is a surplus and the price will fall
Explanation: A price above equilibrium causes quantity supplied to exceed quantity demanded, creating a surplus.
Correct answer: there is a surplus and the price will fall- A. a normal good
- B. none of these answers
- C. an inferior good
- D. a substitute good
Explanation: A good whose demand falls when consumer income rises is an inferior good. Normal goods show the opposite income-demand relationship.
Correct answer: an inferior good- A. firms that set their own prices
- B. only one seller.
- C. at least a few sellers.
- D. many buyers and sellers.
Explanation: Perfect competition requires many buyers and sellers, with no individual participant large enough to control the market price.
Correct answer: many buyers and sellers.- A. Geothermy
- B. Demography
- C. Ethnography
- D. Hemos-popography
Explanation: Demography is the statistical study of human populations, including their size, density, location, age, sex, occupation and other…
Correct answer: Demography- A. terragraphic segmentation
- B. fermagraphic segmentation
- C. geothermy segmentation
- D. geodemographic segmentation
Explanation: Geodemographic segmentation combines geographic information with demographic and socioeconomic data to identify groups of consumers.
Correct answer: geodemographic segmentation- A. internal sources
- B. customers
- C. competitors
- D. the local library
Explanation: Internal sources, customers and competitors are recognised sources of new product ideas in marketing.
Correct answer: the local library- A. They did not investigate pricing correctly and priced the product too high
- B. They did not investigate dealer reaction and had inadequate distribution
- C. They defined their marketing research problem too narrowly
- D. They failed to account for the Pepsi Challenge taste test in their marketing efforts
Explanation: Coca-Cola's research concentrated too narrowly on taste-test preferences and failed to measure attachment to the original brand and…
Correct answer: They defined their marketing research problem too narrowly- A. Territorial sales force
- B. Product sales force
- C. Customer sales force
- D. Hybrid sales force
Explanation: A territorial sales force assigns each salesperson an exclusive geographic area and usually responsibility for the firm's full product…
Correct answer: Territorial sales force- A. new brand strategy
- B. line extension strategy
- C. multiband strategy
- D. brand extension strategy
Explanation: Honda uses its established corporate brand name across automobiles, lawn mowers and motorcycles, which is brand extension into different…
Correct answer: brand extension strategy- A. market penetrations
- B. market development
- C. product development
- D. diversification
Explanation: Diversification means entering new markets with new products, especially when the products and fields are unrelated to the firm's previous…
Correct answer: diversification- A. A targeted level of promotional support
- B. A targeted level of customer service at the least cost
- C. A targeted level of transportation expense ratio
- D. A targeted level of field support
Explanation: Marketing logistics aims to deliver the customer service level the firm targets while keeping total logistics costs as low as possible.
Correct answer: A targeted level of customer service at the least cost- A. product concept
- B. production concept
- C. production cost expansion concept
- D. marketing concept
Explanation: The production concept assumes consumers prefer products that are widely available and inexpensive, so firms concentrate on efficient…
Correct answer: production concept- A. Idea generation
- B. Concept development and testing
- C. Idea screening
- D. Brainstorming
Explanation: Idea screening evaluates newly generated product ideas and quickly removes those that are weak, impractical, or inconsistent with company…
Correct answer: Idea screening- A. undifferentiated marketing
- B. differentiated marketing
- C. concentrated marketing
- D. turbo marketing
Explanation: Concentrated marketing targets one small market or a few narrow segments with a large share of marketing effort.
Correct answer: concentrated marketing879. The type of salesforce structure in which the sales force sells along product lines is called a ?
- A. territorial salesforce
- B. product salesforce
- C. customer salesforce
- D. retail salesforce
Explanation: A product salesforce structure assigns salespeople to particular product lines, making them specialists in those products.
Correct answer: product salesforce- A. direct exporting
- B. indirect exporting
- C. licensing
- D. joint venturing
Explanation: Joint venturing involves partnering with foreign companies to produce or market goods and services.
Correct answer: joint venturing