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. Demand draft
- B. Draft
- C. Invoice
- D. Bill of Intent
Explanation: An invoice is the seller's written statement showing the goods or services supplied and the amount payable by the purchaser.
Correct answer: Invoice- A. Public Offering
- B. First Public Offering
- C. Initial Public Offering (IPO)
- D. Going Public
Explanation: An initial public offering is the first sale of a company's shares to the general public, abbreviated IPO.
Correct answer: Initial Public Offering (IPO)- A. Mother company
- B. Father company
- C. Holding company
- D. joint company
Explanation: A holding company controls another company by owning enough voting shares to influence or elect its board and direct management.
Correct answer: Holding company- A. Common fund
- B. Stock fund
- C. Growth fund
- D. Capital growth fund
Explanation: A growth fund invests mainly in shares of companies expected to increase earnings and market value, seeking capital gains rather than…
Correct answer: Growth fund- A. Golden bonus
- B. Golden shake hand
- C. Friendly handshake
- D. Golden handshake
Explanation: A golden handshake is a large severance payment made to a senior employee who retires or loses the job because of a takeover or…
Correct answer: Golden handshake- A. Unmovable asset
- B. Fixed property
- C. Production line
- D. Fixed asset
Explanation: A fixed asset is a long-lived asset used in production, such as land, buildings, machinery or equipment.
Correct answer: Fixed asset- A. Lead to freer market
- B. Lead to a more efficient marketplace
- C. Both of them
- D. None of them
Explanation: Deregulation removes or reduces government restrictions, allowing market forces to operate more freely.
Correct answer: Both of them- A. Consortium
- B. Pool
- C. Incorporation
- D. Conglomerate
Explanation: A consortium is an association of independent companies that combine resources for a particular common objective while generally remaining…
Correct answer: Consortium- A. Conglomerate
- B. Multinational
- C. giant
- D. Incorporation
Explanation: A conglomerate is a firm operating in two or more largely unrelated lines of business.
Correct answer: Conglomerate- A. Night Price
- B. Closing Price
- C. End price
- D. Final price
Explanation: The closing price is the price recorded for the final transaction in a stock during a trading session.
Correct answer: Closing Price- A. A big company
- B. Stock market
- C. Joint-stock
- D. A multinational company
Explanation: Bourse is a French term for a stock exchange or stock market where securities are bought and sold.
Correct answer: Stock market1612. Name the price at which the issuer of a bond may retire part of the pond at a specified call date ?
- A. Call price
- B. Bid price
- C. Term Price
- D. Future Price
Explanation: The call price is the price at which a bond issuer may redeem or retire the bond on a specified call date.
Correct answer: Call price- A. Management
- B. Board of Governor
- C. Top brass
- D. Board of Directors
Explanation: Shareholders elect the board of directors to oversee the corporation and perform responsibilities established by its charter.
Correct answer: Board of Directors- A. Open bond
- B. Blank bond
- C. Term bond
- D. Bearer bond
Explanation: Bearer bonds are not registered in the owner's name on the issuer's books; possession generally establishes ownership.
Correct answer: Bearer bond- A. Bid
- B. Offer price
- C. Quote price
- D. None of these
Explanation: A bid is the price a prospective buyer is prepared to pay for a security.
Correct answer: Bid- A. Market with upward and stock prices.
- B. Market with a prolonged period of falling stock prices
- C. A very big market
- D. A very big industrial market
Explanation: A bear market is characterised by a sustained or prolonged decline in stock prices and generally pessimistic investor expectations.
Correct answer: Market with a prolonged period of falling stock prices- A. Checking
- B. Audit
- C. Stock-taking
- D. Accounting
Explanation: An audit is an independent examination of accounting records and financial statements to assess whether they follow accepted accounting…
Correct answer: Audit- A. Value addition
- B. Excise
- C. Value added
- D. Tax on stage
Explanation: Value added is the increase in worth created at each stage of production or distribution, calculated as output value minus the cost of…
Correct answer: Value added- A. Insignia
- B. Patent mark
- C. Trade Mark
- D. Identification mark
Explanation: A trademark is a distinctive name, symbol, or mark placed on goods or packaging to identify the trader or producer.
Correct answer: Trade Mark- A. Cost push theory
- B. Supply and Demand theory
- C. Fundamental theory
- D. Ricardo's theory
Explanation: The supply-and-demand theory explains price adjustment: excess supply puts downward pressure on prices, while excess demand creates upward…
Correct answer: Supply and Demand theory