Free Microeconomics MCQs with Answers

• A. the way humans found the earth
• B. the totality of natural conditions and resources that occur in a specific area
• C. the total complex of manmade elements in an area
• D. mountains oceans rivers and deserts

Explanation: The natural environment means the complete set of naturally occurring conditions and resources in a particular area, such as climate…

• A. dysfunctions in the earth,s atmosphere
• B. ignorance on the part of the underdeveloped nations
• C. human actions that have harmful consequences
• D. unknown bacteria and viruses

Explanation: Pollution results from human activities such as industrial production, transport, and waste disposal that impose harmful effects on others…

• A. By a command system
• B. According to tradition
• C. Through a price system
• D. By executive fiat

Explanation: In a market economy, prices convey information about scarcity and demand, guiding consumers and producers toward their production and…

• A. The more elderly widowers
• B. Women who derived their identity from being someone's wife
• C. Women living in large cities those with small incomes and those who are fairly young
• D. all of the above

Explanation: The loss of a spouse can be especially severe for elderly widowers, women whose identity depended heavily on marriage, and relatively…

• A. irreversible
• B. the inevitable outcome of modernization
• C. a reasonable response to the declining intellectual performance that occurs after age 55
• D. none of the above

Explanation: Early retirement is not necessarily irreversible or an inevitable result of modernization, nor is it simply a rational response to…

• A. oligopolies
• B. trusts
• C. interlocking directorates
• D. restraint of trade

Explanation: When executives or directors serve on the boards of several companies, the firms are linked through common decision-makers.

• A. increase consumption
• B. create brand awareness and direct consumption
• C. create demand
• D. All of the above

Explanation: Advertising is intended to raise consumption by creating brand awareness, directing consumers toward particular products, and stimulating…

• A. reduced the need for unskilled or semi-skilled workers
• B. eliminated hardcore unemployment
• C. established a general trend toward the professionalization of everyone
• D. All of these

Explanation: The growth of the tertiary, or service, sector has reduced the relative demand for many unskilled and semi-skilled manufacturing jobs.

• A. clear everybody out
• B. capital employment outlay
• C. chief executive officer
• D. Caribbean Entrepreneurs Office

Explanation: CEO is the standard abbreviation for chief executive officer, the senior executive responsible for directing a company’s operations and…

• A. Welcomed minorities
• B. Were socialist
• C. Were horizontally organized
• D. All of the above

Explanation: Craft unions organise workers by a particular skill or occupation across workplaces, making them horizontally organised.

• A. Nissan Motors
• B. Mazda Motors
• C. Toyota Motors
• D. Mitsubishi Motors

Explanation: Japan’s lean production system was developed most famously by Toyota, particularly through its Toyota Production System.

• A. Craft method
• B. Assembly-line method
• C. Lean-production method
• D. Production-line method

Explanation: The earliest cars were built individually by skilled workers using the craft method.

• A. A type of money used in the Middle Ages
• B. Organizations dating back to the 10th century
• C. Kinds of labor unions
• D. Only b and c

Explanation: Guilds were medieval associations of merchants or craftspeople that regulated trades and protected members, appearing in Europe around the…

• A. the experience of the American Indians
• B. immigration from Europe
• C. moves of professionals from New York to Los Angeles
• D. the arrival of the Cuban middle class after Castro

Explanation: The Great Migration moved African Americans from the rural South toward urban industrial centers, much as European immigration supplied…

• A. structural discrimination
• B. individual discrimination
• C. nature of life
• D. personal discrimination

Explanation: Structural discrimination results from broad changes or institutional patterns that disadvantage a group, rather than from one person's…

• A. Democratic personality
• B. unprejudiced personality
• C. authoritarian personality
• D. totalitarian personality

Explanation: The authoritarian personality is associated with strong admiration for authority and power, conformity, and hostility toward people who…

• A. groups inherit certain traits that are inferior
• B. the dominant majority is the fittest from a Darwinian point of view
• C. minority groups should not have access to wealth and power
• D. all of the above

Explanation: Racism combines claims of inherited group superiority or inferiority with efforts to preserve the dominant group's power and resources.

• A. accommodation
• B. acculturation
• C. amalgamation
• D. assimilation

Explanation: Assimilation occurs when a minority is absorbed into the dominant culture, often losing much of its distinct identity.

• A. African Americans
• B. Hispanics
• C. Native Americans
• D. all of the above

Explanation: African Americans, Hispanics, and Native Americans have all experienced renewed ethnic or cultural consciousness in recent decades.

• A. clear-cut
• B. vague because of overlap of traits
• C. restricted to skin color
• D. done according to physical appearance

Explanation: Human racial categories are not sharply separated because physical traits overlap among populations and vary gradually.