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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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981. _______ beliefs values are open to some degree of change ?

  • A. Crucial
  • B. Core
  • C. Primary
  • D. Secondary

Explanation: Secondary beliefs and values are learned preferences that can change over time, such as views about fashion or lifestyle.

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Correct answer: Secondary

982. Drop shippers perform which of the following functions ?

  • A. Assumes title and ships coal, lumber or heavy equipment to a buyer
  • B. Stocks the bread rack in a grocery store
  • C. Maintains, owns and stocks a CD display in a grocery store
  • D. Sells jewelry out of a catalog

Explanation: Drop shippers take title to goods but do not normally keep them in inventory; they arrange shipment directly to the buyer.

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Correct answer: Assumes title and ships coal, lumber or heavy equipment to a buyer

983. ________ is setting the price steps between various products in a product the based on cost difference between the products, customer evaluations of different features, and competitors prices ?

  • A. Optional-product pricing
  • B. Captive-product pricing
  • C. Product line pricing
  • D. By-product pricing

Explanation: Product line pricing sets different prices within a related product range by considering cost differences, customer-perceived value, and…

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Correct answer: Product line pricing

984. Which of the following promotional budget methods wrongly views sales as the cause of promotion rather than as the result ?

  • A. Affordable method
  • B. Percentage of Sales method
  • C. Competitive parity method
  • D. Objective and task method

Explanation: The percentage-of-sales method sets the promotional budget as a fixed share of current or expected sales, treating sales as the cause…

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Correct answer: Percentage of Sales method

985. When an international seller sells a plant equipment or technology to another country and agrees to take payment in the resulting products, it is called?

  • A. barter
  • B. buy-back
  • C. counterpurchase
  • D. like-value-exchange

Explanation: Buy-back is a countertrade arrangement in which the seller supplies plant or technology and receives payment in the products produced by…

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Correct answer: buy-back

986. When Micheal Jordan and Tiger Woods use marketing to promote their careers and improve their impact and incomes they are using?

  • A. cause-related marketing
  • B. idea marketing
  • C. nonprofit marketing
  • D. person marketing

Explanation: Person marketing uses promotional activity to create, maintain, or change public attitudes toward an individual, such as an athlete or…

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Correct answer: person marketing

987. _______ factors are the most popular bases for segmenting customer groups?

  • A. Geographic
  • B. Demographic
  • C. Psychographic
  • D. Behavioral

Explanation: Demographic factors such as age, gender, income, education, and family size are widely used because they are relatively easy to measure…

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Correct answer: Demographic

988. It is fact that there are 24 million left-handed people in the United States however most marketers do not attempt to appeal to or design products for this group because there is little in the way of census data about this is group Therefore, this groups fails in one of the requirements for effective segmentation Which of the following is most likely to apply in this case ?

  • A. actionable
  • B. substantial
  • C. differentiable
  • D. measurable

Explanation: A segment is measurable when its size, purchasing power, and characteristics can be quantified with reliable data.

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Correct answer: measurable

989. ________ is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter?

  • A. Mass marketing
  • B. Market segmentation
  • C. Market targeting
  • D. Market positioning

Explanation: Market targeting follows segmentation: the firm evaluates the attractiveness of each segment and chooses one or more to serve.

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Correct answer: Market targeting

990. In terms of special product life cycles a ________ is a basic and distinctive mode expression?

  • A. genre
  • B. style
  • C. fashion
  • D. fad

Explanation: A style is a basic and distinctive mode of expression, such as a particular style of clothing or furniture.

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Correct answer: style

991. ________ consists of dividing a market into distinct groups of buyers on the basis of needs, characteristics or behavior who might require separate products or marketing mixes?

  • A. Product differentiation
  • B. Market segmentation
  • C. Market targeting
  • D. Market positioning

Explanation: Market segmentation divides a broad market into groups with distinct needs, characteristics, or behaviors that may require different…

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Correct answer: Market segmentation

992. _______ is the general term for a buying and selling process that is supported by electronic means?

  • A. Internet commerce
  • B. Web commerce
  • C. Computer commerce
  • D. Electronic commerce

Explanation: Electronic commerce is the broad term for buying and selling supported by electronic networks and technologies, including websites, online…

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Correct answer: Electronic commerce

993. successful ________ depends on how well a company blends its people organizational structure decision and reward systems, and company culture into a cohesive program that supports its strategies?

  • A. marketing strategy
  • B. marketing control
  • C. marketing analysis
  • D. marketing implementation

Explanation: Marketing implementation turns a chosen strategy into coordinated action by aligning people, structure, decision systems, rewards, and…

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Correct answer: marketing implementation

994. The type of sales presentation approach that requires good listening and problem-solving skills is the ?

  • A. canned approach
  • B. formula appraoch
  • C. need-satisfaction approach
  • D. critical-thinking approach

Explanation: The need-satisfaction approach depends on listening carefully to identify the buyer's needs and then solving the problem through the…

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Correct answer: need-satisfaction approach

995. _______ is quoted as saying that everyone lives by selling something?

  • A. Bill Gates
  • B. Robert Louis Stevenson
  • C. Arthur Miller
  • D. Henry Ford

Explanation: The statement that everyone lives by selling something is commonly attributed to Robert Louis Stevenson.

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Correct answer: Robert Louis Stevenson

996. Using a successful brand name to introduce additional items in a given product category under the same brand same (such as new flavors, forms, colors, added ingredients or package seizes) is called a(n)?

  • A. line extension
  • B. brand extension
  • C. multibranding
  • D. new brands

Explanation: A line extension uses an existing brand for new varieties within the same product category, such as new flavours, sizes, or colours.

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Correct answer: line extension

997. The use of price points for reference to different levels of quality for a company's related products is typical of which product mix pricing strategy ?

  • A. Optional-product pricing
  • B. Captive-product pricing
  • C. By-product pricing
  • D. Product line pricing

Explanation: Product line pricing sets different price points for related products that represent different quality or feature levels.

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Correct answer: Product line pricing

998. The total number of item that the company carries within its product lines refers to the ________ of the product mix?

  • A. width
  • B. depth
  • C. length
  • D. consistency

Explanation: Product mix length is the total number of items across all product lines.

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Correct answer: length

999. The typical method of retail operation used by supermarkets and catalog showrooms is called ?

  • A. self-service retailing
  • B. limited-service retailing
  • C. full-service retailing
  • D. service merchandiser

Explanation: Supermarkets and catalog showrooms generally use self-service retailing, allowing customers to select products with limited direct…

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Correct answer: self-service retailing

1000. ______ includes practices such as overstating the product's features or performance luring the customer to the store for a bargain that is out of stock, or running rigged contests ?

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

Explanation: Deceptive promotion includes false product claims, bait-and-switch offers involving unavailable bargains, and rigged contests.

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Correct answer: Deceptive promotion
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