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. Divided Labor
- B. Closed shop
- C. Division of Labor
- D. Open shop
Explanation: Division of labor is the separation of production into specialized tasks performed by different workers or groups.
Correct answer: Division of Labor- A. legal instrument used to grand a right
- B. Something done
- C. legal instrument
- D. none of the above
Explanation: A deed is a formal legal instrument used to create, transfer, or grant a right, especially an interest in property.
Correct answer: legal instrument used to grand a right- A. Saving Account
- B. Fixed account
- C. Current account
- D. Fluctuated account
Explanation: A current account is designed for frequent transactions and can generally be operated whenever the account holder wishes.
Correct answer: Current account- A. cost plus
- B. Cost effective
- C. End price
- D. Consumer price
Explanation: Cost-plus pricing adds a predetermined profit margin to the cost of producing the good. This is why the resulting price is called cost plus.
Correct answer: cost plus- A. Cheap things
- B. Substandard things
- C. Economical in terms of the goods or services received for the money spent
- D. Free in terms of the goods or services received for the money spent
Explanation: Cost-effective means obtaining the greatest or suitable value in goods or services for the money spent.
Correct answer: Economical in terms of the goods or services received for the money spent- A. Company
- B. Corporation
- C. Cooperative
- D. Limited Company
Explanation: A corporation is a legally created organization treated as a separate entity from its members, which allows it to own property and conduct…
Correct answer: Corporation1647. Term the enterprise or organization which is managed by those who use its facilities or services ?
- A. Limited company
- B. Society
- C. Corporation
- D. Cooperative
Explanation: A cooperative is owned or managed by the people who use its facilities or services, such as consumer, producer, or credit cooperatives.
Correct answer: Cooperative1648. Goods that satisfy human wants though their direct use or consumption are called______________?
- A. cash goods
- B. consumer items
- C. consumer goods
- D. cash items
Explanation: Consumer goods directly satisfy human wants through use or consumption, such as food, clothing, and household appliances.
Correct answer: consumer goods- A. Monopolized shop
- B. Monopolized area
- C. Closed shop
- D. Monopolized market
Explanation: A closed shop is a workplace in which employees must belong to the recognized trade union.
Correct answer: Closed shop1650. Point out the term for producer goods such as machinery that is used in production of commodities ?
- A. Capital assets
- B. Running capital
- C. Capital goods
- D. Hard capital
Explanation: Capital goods are producer goods such as machinery, tools, and equipment used to produce other commodities.
Correct answer: Capital goods- A. Authorized amount of stock for issue by corporation
- B. The total stated or par value of the permanently invested capital of corporation
- C. Both of them
- D. None of them
Explanation: Capital stock may refer to the corporation’s authorized share capital and, in accounting usage, the total par value of its permanently…
Correct answer: Both of them- A. Net assets
- B. Solid asset
- C. Holdings
- D. Capital
Explanation: Capital is the stock of goods, assets and money that can be used to generate future income.
Correct answer: Capital- A. Break even
- B. Breakeven point
- C. Both of them
- D. None of them
Explanation: A firm breaks even when its total return equals its total investment or cost, and the specific level at which this occurs is the…
Correct answer: Both of them- A. Bonus
- B. Overtime
- C. Prize
- D. Gift
Explanation: A bonus is an additional payment made by an employer beyond normal wages, often awarded for performance or as a gratuity.
Correct answer: Bonus- A. Free exchange
- B. Liberal Exchange
- C. Barter
- D. Bilateral Trade
Explanation: Barter is the direct exchange of goods or services for other goods or services without using money.
Correct answer: Barter1656. How is termed the legal proceeding in which debtor remains unable to pay his creditors in full ?
- A. Bankruptcy
- B. Default
- C. Total loss
- D. Crash
Explanation: Bankruptcy is the legal process used when a debtor cannot meet obligations to creditors in full.
Correct answer: Bankruptcy- A. A precise list or enumeration of financial transactions
- B. Money deposited for checking savings or breakage use
- C. A customer having business or credit relationship with a firm
- D. All of these
Explanation: An account may mean a financial transaction record, money held for banking use, or a customer relationship maintained by a business.
Correct answer: All of these- A. technology
- B. input costs
- C. government regulation
- D. all of the above
Explanation: Technology, input prices, and government regulations can all shift the supply curve by changing producers’ costs or productive capacity.
Correct answer: all of the above- A. quantity demanded equals quantity supplied
- B. Excess demand and excess supply are zero
- C. The market is cleared by the equilibrium price
- D. All of the above
Explanation: At equilibrium, the quantity buyers want equals the quantity sellers offer, so neither excess demand nor excess supply remains.
Correct answer: All of the above- A. a nonlinear relationship
- B. a positive linear relationship
- C. a scatter diagrams
- D. a negative linear relationship
Explanation: When higher values on the horizontal axis correspond to lower values on the vertical axis, the variables move in opposite directions.
Correct answer: a negative linear relationship