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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- A. Credit worthiness
- B. Credit Worth
- C. Credit line
- D. Ratings
Explanation: Moody's, S&P and Fitch provide credit ratings, which assess the credit quality and default risk of debt securities.
Correct answer: Ratings- A. Proxy vote
- B. Absentia vote
- C. Remote vote
- D. Casting vote
Explanation: A proxy is an authorization allowing another person to cast a shareholder's vote, either in writing or electronically.
Correct answer: Proxy vote- A. A collection of investments, real or financial
- B. Net assets of a company
- C. Total profit of company in a year
- D. Total unmovable assets of a company
Explanation: A portfolio is a collection of investments, which may include financial assets such as shares and bonds or real assets such as property.
Correct answer: A collection of investments, real or financial- A. Oligopoly
- B. Grey market
- C. Oligopsony
- D. Green market
Explanation: An oligopsony exists when a small number of buyers dominate purchases from many sellers and can influence the price.
Correct answer: Oligopsony- A. Lion's share
- B. Market share
- C. Net share
- D. Holding share
Explanation: Market share is the percentage of total industry sales accounted for by a particular company.
Correct answer: Market share- A. Solvency
- B. Crash
- C. Bankruptcy
- D. Liquidation
Explanation: Liquidation is the process of ending a firm by selling its assets, paying creditors, and distributing any remaining value to shareholders.
Correct answer: Liquidation- A. joint company
- B. Joint stock company
- C. Limited joint company
- D. Limited Company
Explanation: A joint-stock company combines features of a partnership, such as pooled ownership, with features of a corporation, such as transferable…
Correct answer: Joint stock company- A. Going legal
- B. Book corporation
- C. Chartered corporation
- D. Incorporation
Explanation: Incorporation is the legal process by which a company is formed as a corporation under state law and receives its charter.
Correct answer: Incorporation- A. Bonus
- B. Up level
- C. Goodwill
- D. Upgradation
Explanation: Goodwill is the excess of the purchase price over the fair market value of the identifiable net assets acquired.
Correct answer: Goodwill1530. What is called when a private company first offers shares to the public market and investors ?
- A. Public offering
- B. Public floating
- C. going public
- D. Coming public
Explanation: Going public describes a private company’s first sale of shares to the general public, usually through an initial public offering.
Correct answer: going public- A. Foreclosure
- B. Default
- C. Bankrupt
- D. None of these
Explanation: Foreclosure is the legal process through which a mortgage lender seizes and typically sells property after the borrower fails to make…
Correct answer: Foreclosure- A. Gross Profit
- B. Profit share
- C. Dividend
- D. Right share
Explanation: A dividend is the portion of distributable profit paid to shareholders according to their shareholding.
Correct answer: Dividend- A. Deflated market
- B. Depressed market
- C. Bearish market
- D. Weak market
Explanation: A depressed market has weak demand relative to supply, commonly producing low prices and reduced business activity.
Correct answer: Depressed market- A. Rolling debt
- B. Bad debt
- C. Rescheduling
- D. Default
Explanation: Default occurs when a borrower fails to pay interest or principal on time or violates the terms of the debt agreement.
Correct answer: Default- A. Debenture
- B. Securities
- C. Credit rating
- D. None of them
Explanation: A debenture is generally an unsecured debt instrument, so repayment rests on the issuer’s creditworthiness and integrity rather than on…
Correct answer: Debenture- A. Efficient Account
- B. Cost Accounting
- C. Ultra-country economic risk
- D. Outcome risk
Explanation: Cost accounting supplies management with information about production costs, cost control, and operating efficiency.
Correct answer: Cost Accounting- A. Stock market
- B. Open market
- C. Capital market
- D. International market
Explanation: The capital market deals in long-term financial instruments such as shares, bonds and other securities.
Correct answer: Capital market- A. Bull market
- B. Beamish market
- C. Upward market
- D. Hot market
Explanation: A bull market is characterised by sustained or expected price increases, reflecting optimism among investors.
Correct answer: Bull market- A. Bounce
- B. Return
- C. Grossed
- D. Refused
Explanation: A cheque is said to bounce when the bank returns it unpaid, commonly because the account lacks sufficient funds.
Correct answer: Bounce- A. Internal laws
- B. By laws
- C. Character
- D. Memorandum of articles
Explanation: By-laws are rules made to govern the internal management and conduct of an organisation.
Correct answer: By laws