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 48 of 88
- A. 15
- B. 23
- C. 29
- D. 33
Explanation: The standard marketing-textbook estimate is that advertising accounts for about 23 percent of total promotion spending.
Correct answer: 23- A. fixed costs
- B. variable costs
- C. standard costs
- D. independent costs
Explanation: Fixed costs remain unchanged as production or sales volume changes within the relevant operating range, such as rent.
Correct answer: fixed costs- A. Approach
- B. handling objections
- C. closing
- D. follow-up
Explanation: Follow-up is the final selling stage, occurring after closing to confirm delivery, satisfaction, and future customer needs.
Correct answer: follow-up- A. Marketing strategy
- B. Marketing control
- C. Marketing analysis
- D. Marketing implementation
Explanation: Marketing implementation converts planned strategies into concrete activities such as launching campaigns, setting prices, and…
Correct answer: Marketing implementation- A. decline stage
- B. introduction stage
- C. growth stage
- D. maturity stage
Explanation: In the decline stage, demand falls because of changing tastes, newer technology, or stronger competitors.
Correct answer: decline stage- A. Affordable method
- B. Percentage of Sales method
- C. Competitive parity method
- D. Objective and task method
Explanation: The competitive parity method sets the promotion budget in line with competitors’ spending.
Correct answer: Competitive parity method- A. group
- B. bi-variant population
- C. sample
- D. market target
Explanation: A sample is a smaller group selected to represent the characteristics of the entire population.
Correct answer: sample- A. vertical marketing system
- B. parallel marketing system
- C. diversified marketing system
- D. horizontal marketing system
Explanation: A horizontal marketing system occurs when firms operating at the same channel level combine resources for a common opportunity.
Correct answer: horizontal marketing system- A. creative selling
- B. high pressure telling
- C. detail selling
- D. hard core selling
Explanation: A cooling-off period protects consumers from high-pressure selling, where urgency or psychological pressure pushes them into an unwanted…
Correct answer: high pressure telling- A. simplicity
- B. structure
- C. organization
- D. flexibility
Explanation: Survey research is valued for its flexibility because researchers can question many people about different attitudes, behaviours, and…
Correct answer: flexibility- A. Rapid globalization
- B. The changing world economy
- C. The call for more socially responsible marketing
- D. The micro-chip revolution
Explanation: Technological communication that reduces the importance of physical distance helps firms operate and compete across national borders, a…
Correct answer: Rapid globalization- A. Selective sponsorship
- B. Probing
- C. focus group interviewing
- D. the Delphi method
Explanation: A focus group brings a small number of participants together under a trained moderator to discuss a product, service, or organization.
Correct answer: focus group interviewing- A. demand
- B. basic staple
- C. product
- D. service
Explanation: A service is an intangible activity or benefit, such as banking, transport, or consulting, and it does not transfer ownership of a…
Correct answer: service- A. Product feature
- B. sponsorship
- C. brand
- D. logo
Explanation: A brand is the complete identifying name, term, sign, symbol, design, or combination used by a seller.
Correct answer: brand- A. reseller
- B. business
- C. government
- D. service
Explanation: Photocopier manufacturers are organizations buying bulbs for use in producing or operating their business, so this is a business market.
Correct answer: business- A. Target market decisions
- B. Produced assortment and services decisions
- C. Pricing decisions
- D. Promotion decisions
Explanation: Choosing between high markups with lower sales volume and low markups with high volume is a pricing decision.
Correct answer: Pricing decisions- A. Psychographics
- B. Personality
- C. Demographics
- D. Lifestyle
Explanation: Personality consists of distinctive psychological characteristics that produce relatively consistent responses to the environment.
Correct answer: Personality- A. conventional marketing system
- B. power-based marketing system
- C. horizontal marketing system
- D. vertical marketing system
Explanation: A vertical marketing system unifies producers, wholesalers, and retailers at successive distribution levels.
Correct answer: vertical marketing system- A. Affordable method
- B. Percentage of sales method
- C. Competitive parity method
- D. Objective and task method
Explanation: The objective-and-task method first sets communication objectives, identifies the tasks needed, and budgets their costs, making it the…
Correct answer: Objective and task method- A. the sales chart
- B. the dynamic growth curve
- C. the adoption cycle
- D. the adoption cycle
- E. the product life cycle
Explanation: The product life cycle traces a product's sales and profits from introduction through growth, maturity, and decline.
Correct answer: the product life cycle