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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.

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1,742 questions · page 47 of 88

921. Yahoo, Infoseek, and Baido are all called ?

  • A. browsers
  • B. Webcasters
  • C. search engines
  • D. software

Explanation: Yahoo, Infoseek, and Baidu are search engines because they help users locate information on the web.

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Correct answer: search engines

922. Anything that can be offered to a market for attention acquisition, use, or consumption that might satisfy a want or need is called a(n) ?

  • A. idea
  • B. demand
  • C. product
  • D. service

Explanation: A product is any offering presented to satisfy a want or need, including physical goods, services, ideas, people, places, and experiences.

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Correct answer: product

923. Successful service companies focus their attention on both their customers and their employees they understand ________ which links service firm profits with employee and customer satisfaction ?

  • A. internal marketing
  • B. service-profit chains
  • C. interactive marketing
  • D. service differentiation

Explanation: The service-profit chain links internal service quality and employee satisfaction with customer value, loyalty, and ultimately profits.

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Correct answer: service-profit chains

924. If a company's objective were to reach masses of buyers that were geographically dispersed at a low cost per exposure the company would like choose which of the following promotion forms ?

  • A. Advertising
  • B. Personal selling
  • C. Public relations
  • D. Sales promotion

Explanation: Advertising is suited to reaching a large, geographically scattered audience at a relatively low cost per exposure.

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Correct answer: Advertising

925. A(n) _____ are computerized collections of information obtained from data sources within the company ?

  • A. retrieval systems
  • B. marketing research reports
  • C. flow diagrams and PERT charts
  • D. internal databases

Explanation: Internal databases are computerized collections of customer, sales, inventory and other information generated from sources within the…

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Correct answer: internal databases

926. The orange juice manufacturers know that orange juice is most often consumed in the mornings. However they would like to change this and make the drink acceptable during other time periods during the day Which form of segmentation would they need to work with and establish strategy reflective of their desires ?

  • A. gender segmentation
  • B. benefit segmentation
  • C. occasion segmentation
  • D. age and lief-cycle segmentation

Explanation: Occasion segmentation divides consumers according to when or under what occasion they use a product, such as morning, afternoon or…

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Correct answer: occasion segmentation

927. More and more salespeople are being evaluated and compensated based on different measures than in the past. All of the following are illustrations of those measures EXCEPT ?

  • A. long term customer sanctification
  • B. competitive predatory pricing performance
  • C. full customer service
  • D. retention rates

Explanation: Modern sales evaluation may include customer satisfaction, service quality and retention rates because these reflect long-term…

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Correct answer: competitive predatory pricing performance

928. ___________ have contractual authority to sell a manufacturer's entire output?

  • A. Selling agents
  • B. Rack jobbers
  • C. Manufacturer's agents
  • D. Purchasing agents

Explanation: Selling agents have contractual authority to sell a manufacturer's entire output, usually on a continuing basis.

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Correct answer: Selling agents

929. In terms of execution style a family seated at the dinner table enjoying the advertised product would be an example of which of the following types of advertising ?

  • A. Slice of life
  • B. Lifestyle
  • C. Mood or imagery
  • D. Personality symbol

Explanation: A family using a product in an ordinary everyday setting illustrates the slice-of-life execution style.

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Correct answer: Slice of life

930. Concerns that the manufactures of harmful products such as tobacco have influence on lawmakers to the detriment of the public interest is used as evidence of which criticism of marketing ?

  • A. Too much advertising
  • B. Too few social goods
  • C. Cultural pollution
  • D. Too much political power

Explanation: Influence by manufacturers of harmful products over lawmakers is cited as evidence that marketing interests can possess too much political…

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Correct answer: Too much political power

931. The __________ is a person within a reference group who because of special skills knowledge personality or other characteristics exerts influence on others ?

  • A. facilitator
  • B. referent actor
  • C. opinion leader
  • D. social role player

Explanation: An opinion leader is a knowledgeable or respected member of a reference group whose views influence others' attitudes or purchases.

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Correct answer: opinion leader

932. _________ are products bought by individuals and organizations for further processing or for use in conducting a business?

  • A. Consumer products
  • B. Services
  • C. Industrial products
  • D. Specialty products

Explanation: Industrial products are bought by businesses or organizations for further processing, resale or use in operations.

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Correct answer: Industrial products

933. Pricing to cover variable costs and some fixed costs as in the case of some automobile distributorships that sell below total costs is typical of which of the following pricing objectives ?

  • A. current profit maximization
  • B. product quality leadership
  • C. Market share leadership
  • D. Survival

Explanation: Pricing below total cost to cover variable costs and part of fixed costs is a survival objective, used when a firm is trying to remain…

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Correct answer: Survival

934. A _____ is a good offered either free or at low cost as an incentive to buy a product ?

  • A. patronage reward
  • B. spiff
  • C. price pack
  • D. premium

Explanation: A premium is a free or low-cost item offered to encourage the purchase of another product.

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Correct answer: premium

935. That the company that overlooks new and better ways to do things will eventually lose customers to another company that has found a better way to serving customer needs is a major tenet of ?

  • A. innovative marketing
  • B. consumer oriented marketing
  • C. value marketing
  • D. sense -f mission marketing

Explanation: Innovative marketing requires a firm to seek new and better ways to satisfy customer needs, since failing to innovate can cause customers…

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Correct answer: innovative marketing

936. All of the following considered to be drawbacks of local marketing EXCEPT ?

  • A. it can drive up manufacturing and marketing costs by reducing economies of scale
  • B. it can create logistical problems when the company tries to meet varied requirements
  • C. it can attract unwanted competition
  • D. it can dilute the brand's overall image

Explanation: Local marketing can increase costs, create logistical complications, and weaken a consistent brand image because offerings are tailored to…

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Correct answer: it can attract unwanted competition

937. Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. _____ includes practices such as falsely advertising factory of wholesale prices or a large price reduction from a phony high retail price ?

  • A. Deceptive promotion
  • B. Deceptive packaging
  • C. Deceptive pricing
  • D. Deceptive cost structure

Explanation: Deceptive pricing occurs when sellers misrepresent the regular price, such as claiming a discount from a fictitiously high retail price.

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Correct answer: Deceptive pricing

938. When companies make marketing decisions by considering consumers wants and the long run interests of the company consumer and the general population they are practicing which of the following principle ?

  • A. Innovative marketing
  • B. Consumer-oriented marketing
  • C. Value marketing
  • D. Societal marketing

Explanation: Societal marketing balances consumer wants with the long-run interests of consumers, the company, and society as a whole.

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Correct answer: Societal marketing

939. The advantages of audience selectivity no ad competition and personalization apply to which type of media ?

  • A. Newspapers
  • B. Television
  • C. Direct Mail
  • D. Radio

Explanation: Direct mail permits marketers to target selected audiences, avoid competing advertisements in the same medium, and personalize messages.

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Correct answer: Direct Mail

940. One of the most common problems with using internal database information is that ?

  • A. since it was probably collected for some other purpose it may be incomplete or wrong
  • B. it is usually expensive to retrieve
  • C. top executives are usually unwilling to relinquish data therefore the data has limits
  • D. the data is almost always unsecured and therefore, suspect as to reliability

Explanation: Internal database information was often collected for operational purposes rather than the current research question, so it may be…

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Correct answer: since it was probably collected for some other purpose it may be incomplete or wrong
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