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. Diversification
- B. horizontal integration
- C. monopoly
- D. vertical integration
Explanation: Horizontal integration occurs when firms operating at the same stage and in the same industry combine, such as one textile manufacturer…
Correct answer: horizontal integration- A. Internal laws
- B. By laws
- C. Character
- D. Memorandum of articles
Explanation: Bylaws are the internal rules and procedures that govern an organization's management and operations.
Correct answer: By laws- A. Payment made for the use of another person's money
- B. Payment made for the use of bank's money
- C. Share in profit
- D. Devaluation in the Currency
Explanation: Interest is the return paid for borrowing or using someone else’s money, usually stated as a percentage of the principal.
Correct answer: Payment made for the use of another person's money- A. Floor price
- B. Fixed price
- C. Bid Price
- D. Basic Price
Explanation: A floor price is a government-set minimum price, often used to protect producers from very low market prices.
Correct answer: Floor price1585. Downsizing is ?
- A. to make in a smaller size
- B. to make in actual size
- C. To make in half size
- D. None of these
Explanation: Downsizing means reducing the size or scale of an organisation, commonly through cuts in its workforce or operations.
Correct answer: to make in a smaller size- A. cash goods
- B. consumer items
- C. consumer goods
- D. cash items
Explanation: Consumer goods directly satisfy human wants, such as food, clothing, and household items.
Correct answer: consumer goods- A. Relative Advantage
- B. Complete Advantage
- C. Comparative Edge
- D. Comparative Advantage
Explanation: Comparative advantage means specializing in goods with the lowest opportunity cost, even when another country can produce every good more…
Correct answer: Comparative Advantage- A. Net assets
- B. Assets
- C. Holdings
- D. Capital
Explanation: Capital consists of produced assets and financial resources used to generate income or further production.
Correct answer: Capital- A. free exchange of money
- B. exchange of services
- C. exchange of goods and services
- D. None of them
Explanation: Barter is direct exchange of goods or services without using money, so the broad definition is an exchange of goods and services.
Correct answer: exchange of goods and services1590. What is write-Off?
- A. Charging an asset amount to expense of loss
- B. To forget
- C. To withdraw
- D. None of these
Explanation: A write-off removes an asset’s unrecoverable value from the accounts by charging it to an expense or loss.
Correct answer: Charging an asset amount to expense of loss- A. Liquidator
- B. Solicitor
- C. Receiver
- D. Agent
Explanation: A receiver is appointed to take control of a debtor’s assets and manage repayment for secured creditors.
Correct answer: Receiver- A. Solid asset
- B. Unmovable property
- C. Real estate
- D. Property
Explanation: Real estate consists of land together with buildings and other permanently attached physical property.
Correct answer: Real estate- A. Mutual arrangement
- B. Quid Pro quo
- C. Bilateral arrangement
- D. common interest
Explanation: Quid pro quo means an exchange of one benefit for another: the firm receives research and directs its trades to the research provider.
Correct answer: Quid Pro quo- A. Total amount of money being borrowed or lent
- B. Party affected by agent decision in a principal agent relationship
- C. Both of them
- D. None of them
Explanation: Principal has both meanings listed: it is the original amount borrowed or lent, and it is the party for whom an agent acts in a…
Correct answer: Both of them- A. Grey market
- B. Over-the counter (OTC)
- C. Open market
- D. Back market
Explanation: An over-the-counter market has no centralized exchange; geographically dispersed dealers trade securities through communication networks…
Correct answer: Over-the counter (OTC)- A. Oligopoly
- B. Monopoly
- C. Oligopsony
- D. Grey market
Explanation: An oligopoly is dominated by a few producers, so each firm's decisions affect the others and firms may cooperate to influence output and…
Correct answer: Oligopoly- A. National Association of Securities Dealers Automatic Quotation system (Nasdaq)
- B. New York Stock Exchange
- C. Wall Street
- D. Nikkei Stock Average
Explanation: NASDAQ stands for National Association of Securities Dealers Automated Quotations and electronically reports quotations for actively…
Correct answer: National Association of Securities Dealers Automatic Quotation system (Nasdaq)- A. Hard Leaf
- B. Maple Leaf
- C. Green Leaf
- D. Gold Leaf
Explanation: The Maple Leaf is a Canadian bullion coin minted in gold, silver, and platinum, normally sold for a small premium above its metal value.
Correct answer: Maple Leaf- A. Liquid asset
- B. Solid asset
- C. Hard asset
- D. None of these
Explanation: A liquid asset can be converted into cash quickly and with little loss in value, making cash and short-term securities typical examples.
Correct answer: Liquid asset- A. kickback
- B. Commission
- C. Bribe
- D. Graft
Explanation: A kickback is a secret payment returned to an intermediary or official for directing business, such as awarding a contract to a particular…
Correct answer: kickback