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 78 of 88
- A. Spreadsheet
- B. Splinter
- C. Family growth
- D. Butterfly
Explanation: A butterfly is a corporate restructuring in which a company separates divisions into distinct companies, with existing shareholders…
Correct answer: Butterfly- A. A multinational company
- B. Large and creditworthy company
- C. A conglomerate company
- D. A consortium of companies
Explanation: A blue-chip company is a large, established and financially reliable firm with a strong reputation and generally dependable securities.
Correct answer: Large and creditworthy company- A. Offer price
- B. Bid price
- C. Quote price
- D. Market price
Explanation: The bid price is the highest price a buyer is currently willing to pay for a security.
Correct answer: Bid price- A. B2B
- B. Indirect contact
- C. Step by step
- D. Trickle down
Explanation: B2B means business-to-business, an internet strategy in which one business deals directly with another business rather than selling to…
Correct answer: B2B- A. Balanced
- B. At Equilibrium
- C. At Par
- D. None of them
Explanation: A security sold at a price equal to its stated face or nominal value is trading at par.
Correct answer: At Par- A. Assets of business that can be applied to its operation
- B. Amount of current assets that exceeds current liabilities
- C. Both of them
- D. None of them
Explanation: Working capital is commonly expressed as current assets minus current liabilities, called net working capital; current assets alone are…
Correct answer: Both of them1547. What is underwriter ?
- A. To assume financial responsibility for grantee against failure
- B. To sign so as to assume liability in case of specified losses
- C. To guarantee the purchase or to agree to buy the unsold part of stock at fixed time and price
- D. All of them
Explanation: An underwriter assumes financial liability by agreeing to purchase or cover securities that remain unsold, and the term also broadly…
Correct answer: All of them- A. Idealism
- B. Blind game
- C. Speculation
- D. Risk covering
Explanation: Speculation means undertaking a risky business activity in expectation of earning a substantial profit from future price changes.
Correct answer: Speculation- A. combine fund
- B. Mutual fund
- C. Liquid fund
- D. Stock holding company
Explanation: A mutual fund pools investors’ money, issues or redeems units, and invests the capital in a diversified portfolio of securities.
Correct answer: Mutual fund1550. Monoculture is ?
- A. Farming practice of growing a single crop
- B. Homogeneous Nations
- C. Homogeneous market
- D. Homogeneous business
Explanation: Monoculture means cultivating one crop, usually over a large area or throughout a farming system.
Correct answer: Farming practice of growing a single crop- A. Market Economy
- B. Free Market
- C. Both of them
- D. None of them
Explanation: A free market is one in which prices and allocation are mainly determined by demand and supply rather than government controls.
Correct answer: Both of them- A. To convert assets into cash
- B. Abolish
- C. Both of them
- D. All of them
Explanation: To liquidate may mean converting assets into cash and using them to settle debts, and it can also mean abolishing or eliminating…
Correct answer: Both of them- A. Grey market
- B. White market
- C. Red market
- D. Open market
Explanation: A grey market involves goods traded through unofficial or unauthorized channels without necessarily being illegal.
Correct answer: Grey market- A. Generic
- B. Forged goods
- C. Contraband
- D. Clean goods
Explanation: Generic products are sold without a brand name or trademark and are usually identified by their standard product name.
Correct answer: Generic- A. Open trade
- B. Free trade
- C. Open sky trade
- D. Easy trade
Explanation: Free trade is the exchange of goods and services across borders with minimal or no tariffs, quotas, or foreign-exchange restrictions.
Correct answer: Free trade1556. Free port is ?
- A. Where no export duties are levied
- B. Where no import duties are levied
- C. Where no expert or import duties are levied
- D. Where everything can be import or export
Explanation: A free port is an area where goods may be imported and exported without customs duties, subject to applicable regulations.
Correct answer: Where no expert or import duties are levied- A. The market value of securities less any debt incurred and common stock and preferred stock
- B. Funds provided to a business by the sale of stock
- C. Both of them
- D. None of them
Explanation: Equity represents the owners' residual interest after liabilities are deducted from asset value, and it can be raised through the sale of…
Correct answer: Both of them- A. Embargo
- B. Contraband
- C. Ban
- D. Restriction
Explanation: An embargo is an official government order restricting or completely stopping trade, shipping, or specified imports and exports with…
Correct answer: Embargo- A. Share
- B. Profit-share
- C. Dividend
- D. Margin
Explanation: A dividend is the portion of a company's distributable profit paid to its shareholders.
Correct answer: Dividend- A. Property right
- B. Sole right
- C. Copyright
- D. Right
Explanation: Copyright gives an author or assignee exclusive legal rights to publish, reproduce, or otherwise use an original work.
Correct answer: Copyright