Microeconomics MCQs

Microeconomics MCQs

Answer these 100+ Microeconomics MCQs and see how sharp is your knowledge of Microeconomics.
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1: The total amount, such as the aggregate level of output

A.   Average

B.   Aggregate

C.   Disaggregate

D.   Congregate

2: ________ is When one event brings about another event

A.   Correlation

B.   Comparison

C.   Causation

D.   Association

3: Ceteris paribus is Holding all other things _____

A.   Constant

B.   Variable

C.   Fixed

D.   Static

4: _______ is When two events occur together

A.   Causation

B.   Correlation

C.   Association

D.   Comparison

5: The economic problem is The fact that _____ forces us to choose

A.   Shortage

B.   Abundance

C.   Scarcity

D.   Poverty

6: The study of choices we make among our many wants and desires given our limited resources is called

A.   Statistics

B.   Economics

C.   Physics

D.   Commerce

7: Empirical analysis is The use of data to test ___

A.   Law

B.   Hypothesis

C.   Theory

D.   Deduction

8: The ______ view that what is true for the individual is always true for the group is called Fallacy of composition

A.   Assumed

B.   Correct

C.   Incorrect

D.   Exact

9: Hypothesis is A testable ______

A.   Law

B.   Proposition

C.   Theory

D.   Deduction

10: The study of household and firm behavior and how they interact in the marketplace is known as

A.   Microeconomics

B.   Macroeconomics

C.   Mini Economics

D.   None of these

11: Normative statement is a subjective, _____statement that attempts to describe what should be done.

A.   Contestable

B.   Non-contestable

C.   Disputale

D.   None of above

12: An objective, testable statement that describes what happens and why it happens is ______statement.

A.   Positive

B.   Negative

C.   Interrogative

D.   Imperative

13: _____ used to produce goods and services are called resources.

A.   Input

B.   Output

C.   Both of these

D.   None of these

14: The situation that exists because our unlimited wants exceed our limited resources is ______.

A.   Scarcity

B.   Abundance

C.   Efficiency

D.   Bads

15: Theories and models are simplified versions of the _____used to explain and predict behavior.

A.   Real world

B.   Virtual world

C.   Movie

D.   None of above

16: The main economic problem is that ______ causes us to choose from so many competing options that it is difficult to make the correct choice.

A.   Causation

B.   Demand

C.   Surplus

D.   Scarcity

17: Which of the following is an accurate statement about scarcity?

A.   Because our wants are limited, they create a surplus of resources.

B.   Because our wants are unlimited, they exceed the limited resources available.

C.   Because our wants are limited, they are satisfied by limited resources.

D.   Because our wants are unlimited, they try to make resources unlimited as well.

18: Economists assume that most individuals act as if they are motivated by ______.

A.   Creativity

B.   Selfishness

C.   Greed

D.   Self-interest

19: Our benevolent actions for others are influenced by our own ______ and ______.

A.   Benefits; selflessness

B.   Selfishness; unselfishness

C.   Benefits; costs

D.   Self-interest; selflessness

20: According to economists, people make decisions with ______ in mind.

A.   An expected outcome

B.   Few expectations

C.   Probable disappointments

D.   A selfish motive

21: Theories and models are ______ of the real world.

A.   More complicated versions

B.   More simplified versions

C.   Accurate depictions

D.   Elaborated depictions

22: Which of the following is an accurate statement about an economic hypothesis?

A.   It argues how people should behave.

B.   It analyzes how people have behaved.

C.   It predicts how people will behave.

D.   It records how people are behaving.

23: Which of the following would best enable an economist to discern general patterns of action?

A.   Studying one person

B.   Studying 5 people

C.   Studying 50 people

D.   Studying 1,000 people

24: Which of the following enables economists to focus on the effects of two variables on each other?

A.   Scarcity

B.   Normative statements

C.   Fallacy of composition

D.   Ceteris paribus

25: Which of the following is the term used when one event brings about another?

A.   Causation

B.   Correlation

C.   Ceteris paribus

D.   Aggregate

26: Which of the following is the term used when two events occur together?

A.   Causation

B.   Correlation

C.   Ceteris paribus

D.   Aggregate

27: Which of the following is an accurate statement about economists?

A.   They rarely agree on important issues.

B.   They try always to be objective.

C.   They often make value judgments.

D.   They believe most people are greedy.

28: A ______ is untestable.

A.   Hypothesis

B.   Positive statement

C.   Normative statement

D.   Theory

29: Currently, many economists believe the United States should substitute a national ______ for the current income tax.

A.   Fee quota

B.   Boycott

C.   Tariff

D.   Sales tax

30: Which of the following is probably the most objective?

A.   A positive statement

B.   A negative statement

C.   A normative statement

D.   An opinion statement

31: Rational behavior is When people do the best they can, based on their values and information, under current and anticipated future circumstances

A.   True

B.   False

32: A firm's total revenue is the _____ of its output multiplied by the _____.

A.   Marginal social benefit exceeds marginal social cost; ​price

B.   ​price; marginal cost equals marginal revenue

C.   ​price; number of units of output sold

D.   Making a positive economic​ profit; enter

33: Given linear demand curves, if demand increases and supply decreases, then __________.

A.   The equilibrium price and quantity both increase

B.   Relative prices change constantly to reflect changes in supply and demand

C.   The equilibrium price will increase, but the effect on the equilibrium quantity will be ambiguous

D.   The quantity of soft drinks demanded decreases and the supply of soft drinks decreases

E.   The equilibrium price stays the same and the equilibrium quantity rises

34: When a _____ is applied to a labor market, it is called a minimum wage.

A.   Subsidy

B.   Production quota

C.   Price floor

D.   Price ceiling

35: When unskilled teens earn less than college graduates, society answers the ________ question.

A.   How

B.   What

C.   For whom

D.   Why

36: Normative economics deals with ____ and positive economics deals with ____.

A.   What should be; what is

B.   Fiction; fact

C.   Microeconomics; macroeconomics

D.   Negative aspects; positive aspects

37: In the ______________, households receive goods and services and pay firms for them

A.   Labor market

B.   Financial capital market

C.   Goods and services market

D.   Savings market

38: In the ____________, households work and receive payment from firms.

A.   Financial investment market

B.   Financial capital market

C.   Labor market

D.   Savings market

39: _________ is the synchronized movement of goods through the channel.

A.   Ntermodal

B.   Transportation

C.   CRM

D.   The supply chain

E.   Containerization

F.   Shipping

40: If demand is inelastic, the tax burden falls primarily on the _____ and deadweight loss is _____.

A.   Seller; large.

B.   Seller; small.

C.   Buyer; large

41: At the highest price, you would expect the demand for goods and services to be the _____.

A.   Most

B.   Least

C.   ​none o fthese

D.   Both of these

42: According to the law of demand, a change in _______ causes a movement along the demand curve.

A.   The number of buyers

B.   Buyers' expectations

C.   The price of the good

D.   The price of other related goods

43: An increase in income taxes ________ employment and ________ potential gdp.

A.   ​increases; decreases

B.   ​decreases; decreases

C.   ​increases; does not change

D.   ​increases; increases

E.   Does not​ change; does not change

44: An increase in productivity will _____.

A.   An increase in productivity will

B.   Increase aggregate demand.

C.   Increase aggregate supply.

D.   Increase aggregate supply and aggregate demand.

E.   Decrease aggregate supply and aggregate demand

45: Jewelry, art, hairstyles and clothing each represent examples of ________.

A.   Higure

B.   Nonmaterial culture

C.   Material culture

D.   Low cultur

46: Price wars are prima facie evidence of _____.

A.   Monopoly

B.   Oligopoly.

C.   Imperfect competition.

D.   Perfect competition

47: _____ is excludable and _____ is nonexcludable.

A.   Price; marginal cost

B.   Rival and excludable

C.   A camera; a concert in the park

48: _____ is rival and _____ is nonrival.

A.   Nonexcludable and​ rival; nonexcludable and nonrival

B.   A​ camera; a concert in a public park

C.   A seat on a bus at rush​ hour; national defense

D.   Excludable and​ rival; excludable and nonrival

E.   A​ car; a​ freeway; oxygen in the atmosphere

49: A ________ program is one for which the recipient qualifies on the basis of ________.

A.   Social insurance; income

B.   Means-tested; age

C.   Means-tested; income

D.   Social insurance; need

50: Allocative efficiency best explains ________, and productive efficiency best explains ________.

A.   How something will be produced; when something will be produced

B.   When something will be produced; why something will be produced

C.   Why something will be produced; what will be produced

D.   What will be produced; how something will be produced