Free Microeconomics MCQs with Answers

• A. production-possibility schedules
• B. product-moment correlations
• C. Venn diagrams
• D. welfare functions

Explanation: A production-possibility schedule shows the maximum combinations of goods an economy can produce with its available resources and…

• A. Ownership
• B. consumption
• C. distribution
• D. production

Explanation: Property consists of legally recognized rights of ownership, including the right to use, transfer, or exclude others from an asset.

• A. partnership
• B. subchapter S corporation
• C. sole survivorship
• D. sole proprietorship

Explanation: A sole proprietorship is owned and operated by one person and is the most numerous form of business ownership in the United States.

• A. secure the highest possible salaries for managers
• B. ensure that the long-term interests of the corporation outweigh short-term gains
• C. shield absentee owners from any and all responsibility
• D. shield the board of directors from any and all responsibility

Explanation: Separating ownership from management permits professional managers to run the firm while directors represent shareholders, with the aim of…

• A. Government
• B. stockholders
• C. banks
• D. founders

Explanation: Stockholders own a corporation because they hold its shares, which represent ownership claims and voting rights.

• A. economic consequences
• B. social consequences
• C. value of sacrificed resources
• D. parallel world

Explanation: Opportunity cost is the value of the next-best alternative that must be sacrificed when a choice is made.

• A. distribute
• B. consume
• C. allocate
• D. appropriate

Explanation: Using goods and services to satisfy wants is consumption. Distribution moves products to users, while allocation concerns assigning scarce…

• A. sociology
• B. psychology
• C. archaeology
• D. economics

Explanation: Psychology relies heavily on controlled experiments to study behaviour, making it commonly regarded as the most experimental social…

• A. archaeology
• B. cultural geography
• C. history
• D. ornithology

Explanation: Archaeology reconstructs the lives and societies of people through material remains such as tools, buildings and graves, especially where…

• A. equal to that of women
• B. less than that of women
• C. considerably more than that of women
• D. slightly more than that of women

Explanation: Women generally file more divorce petitions than men, so the percentage filed by men is lower. The exact gap can vary by country and period.

• A. income
• B. the ability to earn income
• C. occupational prestige
• D. all of the above

Explanation: Marriage combines several resources, not just current income: each spouse may contribute earning capacity and occupational status as well.

• A. experience a decline in martial satisfaction
• B. spend more time together and are more content
• C. shift their focus toward their own relationship
• D. all of the above

Explanation: The transition to parenthood and child-rearing commonly reduce marital satisfaction, even though satisfaction may recover later.

• A. norms
• B. illusions
• C. orders
• D. scripts

Explanation: Marital scripts are culturally learned expectations about how husbands and wives should behave.

• A. cannot occur
• B. has not been positively sanctioned in any society
• C. reflects the norms and values of Pakistan society
• D. is considered a sin by all religions of the world

Explanation: In the traditional sociological view, societies have generally linked legitimate reproduction to marriage and the family, so reproduction…

• A. is widespread in several societies
• B. is practiced among Australian aborigines
• C. has been a consistent feature in Western societies
• D. has never been consistently or extensively practiced

Explanation: Although group marriage has been reported in anthropological discussions, it has not been shown to be a consistently widespread or…

• A. discourage marriage
• B. encourage marriage
• C. accept all kinds of man-women unions
• D. pay couples to have children

Explanation: Marriage is encouraged in most societies because it organises family life, inheritance and child-rearing.

• A. two social science disciplines
• B. ways of studying institutions
• C. social limitations placed on marriages
• D. practiced only by select groups in society

Explanation: Endogamy requires marrying within a specified group, while exogamy requires marrying outside it.

• A. Polyandry
• B. Polygyny
• C. Polygamy
• D. Monogamy

Explanation: Monogamy involves one spouse at a time and is therefore not a form of plural marriage.

• A. natural resources are increasing in proportion to an increased demand for them
• B. natural resources are decreasing as demand for them increase
• C. natural resources can be substituted with artificial ones
• D. humans are capable to adapt to other resources when the old ones disappear

Explanation: Environmental depletion occurs when stocks of natural resources decline because extraction or use rises faster than replenishment.

• A. Water
• B. Air
• C. Land
• D. all of the above

Explanation: Pollution can damage all major parts of the environment, including air through emissions, water through waste and chemicals, and land…