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 82 of 88
- A. Share holding
- B. Stake
- C. Partnership
- D. None of these
Explanation: A stake is an ownership share or financial interest in an enterprise. Shareholding is the possession of shares, while partnership is a…
Correct answer: Stake- A. Royalty
- B. Rent
- C. Share
- D. Intellectual royalty
Explanation: A royalty is a payment made for the right to use or exploit a privilege, such as a patent, copyright, mineral deposit, or franchise.
Correct answer: Royalty- A. Registering
- B. Going public
- C. Debuting
- D. Public offering
Explanation: When a company offers its newly issued securities for sale to the general public, the transaction is called a public offering and is…
Correct answer: Public offering- A. Formal summary of proposed project
- B. Document describing chief features of something for participants
- C. Both of them
- D. None of them
Explanation: A prospectus is a formal document that summarizes a proposed investment or project and explains its main features to prospective…
Correct answer: Both of them- A. Price competition
- B. Price support
- C. Price war
- D. Price battle
Explanation: A price war occurs when competing firms repeatedly reduce prices to undercut one another and attract customers.
Correct answer: Price war- A. Real value
- B. Net value
- C. Par value
- D. Gross value
Explanation: Par value is the nominal value printed or legally assigned to a security, especially a bond or share.
Correct answer: Par value- A. Conveyance of property as security for debt
- B. Conveyance of company security for debt
- C. Guarantee for debt
- D. Assurance of debt repayment
Explanation: A mortgage is the transfer or conveyance of an interest in property as security for a loan or other debt.
Correct answer: Conveyance of property as security for debt- A. Encroachment
- B. Monotony
- C. Unipolarity
- D. Monopoly
Explanation: A monopoly gives one person or group exclusive control over supplying a particular good, service, or branch of trade.
Correct answer: Monopoly- A. small units, including individual companies and small group of consumers
- B. Economics of homes
- C. Economics of stock market
- D. Economics of provinces
Explanation: Microeconomics studies individual decision-making units, such as households, consumers, firms, and particular markets.
Correct answer: small units, including individual companies and small group of consumers- A. Rise in the price of an item for sale
- B. An amount added to cost price in calculating selling price
- C. Both of them
- D. All of them
Explanation: A mark-up is the amount added to the cost price to obtain the selling price, and it represents the resulting increase over cost.
Correct answer: Both of them- A. Limited company
- B. Incorporation
- C. Cooperative
- D. Corporation
Explanation: In a limited company, each shareholder's liability is restricted to the unpaid amount on their shares or the amount they agreed to…
Correct answer: Limited company- A. to make queue
- B. items are removed in inverse order
- C. turn by turn
- D. make space for new production
Explanation: LIFO means that the most recently added item is treated as the first one removed, so items leave in the reverse order of their entry.
Correct answer: items are removed in inverse order- A. Letter of intent
- B. Letter of Credit
- C. Letter of Expression
- D. Papers of Landing
Explanation: A letter of intent is a written statement showing that the parties intend to enter into a later formal agreement.
Correct answer: Letter of intent- A. Free market economy
- B. Laissez faire also Laisser faire
- C. Open market economy
- D. Liberal market economy
Explanation: Laissez-faire advocates minimal government interference in commerce, allowing prices and production to be guided mainly by market forces.
Correct answer: Laissez faire also Laisser faire- 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 payment made by a borrower for using money belonging to another party, usually a lender.
Correct answer: Payment made for the use of another person's money- A. Hire and Fire
- B. Rent
- C. Transportation Changes
- D. Freight
Explanation: Freight is the charge paid for transporting goods by ship, rail, road, or air.
Correct answer: Freight- A. A privilege or right officially granted by a person or group by a government
- B. Authorization granted to someone to sell or distribute a company's goods or service in certain area
- C. Territory or limits within which immunity, privilege or right may be exercised
- D. All of the above
Explanation: A franchise may mean a granted privilege, authorization to operate or distribute goods under a company's name, or the territory in which…
Correct answer: All of the above- A. Floor price
- B. Fixed price
- C. Bid price
- D. Basic price
Explanation: A price floor is a government-imposed minimum price, often intended to protect producers from prices falling below a viable level.
Correct answer: Floor price- A. FIFO (first in first out)
- B. LAFO (last in first out)
- C. First come First serve
- D. None of these
Explanation: FIFO assumes that the earliest inventory purchased is sold first, leaving the newest purchases in closing stock.
Correct answer: FIFO (first in first out)- A. To verify signature
- B. To verify the person holding cheque
- C. To sign one's name upon the back of cheque
- D. To sign one's name upon the front of cheque
Explanation: To endorse a cheque means to sign one's name on its back, usually to transfer it or authorize its payment.
Correct answer: To sign one's name upon the back of cheque