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
51: As the marginal physical product of a variable input __________, the marginal cost __________.
A. Increases; increases
B. Increases; decreases
C. Decreases; increases
D. B and c
52: Households ________ final goods and services in the ________ market.
A. Purchase; factor
B. Purchase; product
C. Sell; factor
D. Sell; product
53: In a "seller's market" ________.
A. Demand exceeds supply
B. Suppliers are anxiously looking for a wider range of outlets for their goods and services
C. Customers have the final choice on product specifications
D. There is a limited demand for good quality products
E. Supply exceeds demand
54: In microeconomics, the term _____________________ is synonymous with economies of scale.
A. Diminishing marginal returns
B. Increasing returns to scale
C. Decreasing returns to scale
55: Mc = atc at the minimum of _________ .
A. AFC
B. AVC
C. ATC
D. ABC
56: Mc is a _____-shaped curve due to the law of diminishing returns.
A. MC (correct)
B. Total (correct)
C. U (correct)
D. Two (correct
57: Price gouging is _____
A. Irrational behavior that violates economic logic.
B. A natural response to a sudden increase in demand.
C. Not subject to economic analysis, because it is illegal.
D. A precisely defined concept that leaves no room for dispute or disagreement
58: The demand will be _______________ if the consumer has _________ substitute goods to choose from
A. Elastic; less
B. Elastic; more
C. Elastic; no
D. Inelastic; more
59: The most common pattern for marginal utility is ____________________.
A. Is maximizing utility.
B. Diminishing marginal utility
C. A measurement of utility
D. Individuals choose based on their preferences.
E. With the quantities consumed
60: Total demand is a function of three separate situations, which can be described as ___________.
A. New,
B. Repeat
C. Replacement
D. All of these
61: When consumer demandis sensitive to price changes, _____ occurs.
A. Inelastic demand
B. Elastic supply
C. Elastic demand
D. Inelastic supply
62: With _____________ demand the price changes, but the amount purchased remains the same.
A. Remain the same
B. Perfectly inelastic
C. 2% decrease
D. Elastic
63: You are analyzing a trade-off when you compare the _____and _____ of doing something.
A. Direct costs; total costs
B. Direct costs; opportunity costs
C. Marginal benefits; total benefits
D. Costs; benefits
64: You can afford to buy the latest hdtv, which means that it _____ as demand for you.
A. Counts
B. Does not count
C. Both of these
D. None of these
65: A giffen good is one in which the _____ curve is _____ sloped.
A. Greater than one.
B. Demand; positively
C. Always negative.
D. Rise according to the income effect.
66: Accountants include ____ costs as part of a firm’s costs, while economists include ____ costs.
A. Packaging is a variable cost not a fixed
B. Explicit costs
C. Explicit; explicit and implicit
D. Perfectly elastic
67: A production quota is ______ because at the quantity produced ______.
A. Decreases; rises; is less than
B. Decreases; rises; exceeds
C. Increases; rises; exceeds
D. Increases; falls; is less than
68: A rise in mpc makes the total expenditures (te) curve __________ and __________ the multiplier.
A. Steeper; raises.
B. Steeper; lowers.
C. Both of these
D. None of these
69: All of these statements are characteristic of vzv infections except __________.
A. VZV is a type of herpesvirus
B. A person can get shingles from a person who has chickenpox
C. The virus can be transmitted to others before obvious signs appear
D. The virus is a latent virus that can remain inactive for decades before reactivation occurs
70: _____________ has occurred if a government-owned firm becomes privately owned.
A. Privatization
B. Nationalization
C. Deregulation
D. Regulatory capture
71: The demand for ben & jerry's ice cream will likely be ________ the demand for dessert.
A. Panel A; the downward sloping one
B. More price elastic than
C. A wheat farmer in Kansas
D. More; substitutes
72: Standard deviation measures _____ risk while beta measures _____ risk.
A. Systematic risk
B. Portfolio systematic risk
C. Total risk
D. Total, systematic
73: For most high-income countries of the world, gdp _________________ over time.
A. Has proven to be stable
B. Has risen gradually
C. Has declined slightly
D. Has sharply risen
74: As you become more educated, you provide your environment with a ________
A. Positive externality
B. Negative externality
C. Consumer surplus
D. Producer surplus
75: Compared with competitive markets, monopolies charge ______ prices and produce a ______ output.
A. Lower; higher
B. Higher; higher
C. Lower; lower
D. Higher; lower
76: In the table above at an output of four units the amount of normal profit is _________ .
A. Positive Figure
B. Nagitive Figure
C. Both A and B
D. None of these
77: The earliest written records of auctions are from _____.
A. Rome
B. Huanbei.
C. Athens.
D. Babylon
78: The controller of a monopoly sets the price of goods by charging _____.
A. As much as possible, regardless of the amount sold.
B. Less than the company would charge if it did not have a monopoly.
C. The price at which the profit is maximized.
D. Only a small amount over cost.
79: Refer to exhibit 3-14. at a price of $11, there is a ____________ unit ____________ of good x.
A. (3), with P* = P2.
B. No exchange; no exchange
C. Shortage; 290
D. No shortage or surplus.
80: In a public debate on evolution, ____ refuted the points made against evolution by ____.
A. Huxley; Lyell
B. Darwin; Fitzroy
C. Wilberforce; Huxley
D. Huxley; Hooker
E. Huxley; Wilberforce
81: In a simple circular-flow model, there are flows of _________ and flows of _________.
A. Factors of production; goods and services
B. Funds received from the sale of factors of production; spending on final goods and services
C. Both (a) and (b) are correct.
D. None of the above. Actually, there are no flows in the circular flow of income
82: The main difference between perfect competition and imperfect competition involves _____.
A. Types of consumers
B. The structure of the company
C. Control over price
D. None of these
83: __________________ law implies ownership over an idea or concept or image
A. Intellectual property
B. Copyright
C. Patent
D. Trademark
84: Allocation is concerned with how we choose to use our scarce resources on ___________________.
A. An unlimited number of projects
B. Only Normative economic projects
C. Only Positive economic projects
D. A limited variety of different projects
85: All other things being equal, an increase in supply results in a(n) _____
A. Increase in equilibrium price and a decrease in equilibrium quantity
B. Increase in equilibrium quantity and a decrease in equilibrium price
C. Decrease in equilibrium quantity and a decrease in equilibrium price
D. Increase in equilibrium price and an increase in equilibrium quantity
86: Capital accumulation is the _____, including _____ capital.
A. Growth of capital resources; human
B. Growth of real GDP; physical
C. Development of new goods; financial
D. Increase in firms' profits; financial
87: Human capital is the improvement in ________ created by ________.
A. Physical capital; technology
B. Labor; education and knowledge
C. Labor; physical capital
D. None of the above
88: If an entity can exist apart from one or more related entities, it is said to be ____-independent.
A. Existence
B. Business
C. Weak
D. Relationship
89: If output is three units, then mr>mc>avc and output should be _________ .
A. Increased
B. Decreased
C. Both increased and decreased
D. None of the above
90: If people decide to purchase less at every price level, __________ (shift left) will result.
A. Increase in demand
B. Decrease in demand
C. Decrease in price of the product
D. Increase in price of the product
91: If people have ______ income, they will purchase more of a normalgood.
A. Inverse
B. Less
C. More
D. Increase
92: If the demand for iphones rises as incomes increase, then the iphone is a(n) _____ good.
A. Inferior
B. Abnormal
C. Supply
D. Normal
93: If the government assigns property rights to a common resource, _______.
A. The marginal social cost curve becomes the marginal private cost curve, and the use of the resource is efficient
B. A deadweight loss is created
C. Then the government must also set a production quota to achieve efficiency
D. The common resource will be over utilized
94: If the union (monopoly seller) faces a _____ the situation is called bilateral monopoly.
A. Employment
B. Import restrictions
C. Monopsony buyer
D. Single buyer
95: In a market system, producers are _________ seeking new opportunities to satisfy consumer needs.
A. Never
B. Sometimes
C. Continually
D. Only once
96: The term ____________ refers to the percentage share of a firm's total sales in the market.
A. Market share
B. Concentration ratio
C. Total market ratio
D. Market cap
97: Information asymmetry in a market can lead to ________.
A. A market failure
B. A monopoly
C. Market efficiency
D. A spillover
98: In the diagram to the right, point a provides the _____, point b the _____, and point c the _____.
A. Market equilibrium; market equilibrium; equilibrium quantity
B. Equilibrium price; market equilibrium; equilibrium quantity
C. Equilibrium quantity; market equilibrium; equilibrium price
D. Market equilibrium; market equilibrium; equilibrium quantity
99: International trade is fundamentally a ________________________.
A. Lose-lose situation
B. Win-win situation
C. Win-lose situation
D. War which is won by the strongest
100: In the beginning, some entrepreneurs use ____________ as a source of financing.
A. Asset-based lenders
B. Personal credit cards
C. Wealthy individuals
D. None of the above
List of Microeconomics MCQs Mu...
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Microeconomics MCQs
Вопросы микроэкономики на русском языке
Preguntas de microeconomía en español
日本語でのミクロ経済学の質問
Questioni di microeconomia nelle lingue italiane
Questions de microéconomie en langues françaises
Questões de Microeconomia em Língua Portuguesa
Mikroökonomische Fragen in deutschen Sprachen
中文（简体）语言的微观经济学问题
أسئلة الاقتصاد الجزئي باللغات العربية
Soal mikroekonomi bahasa indonesia
Türkçe mikro iktisat soruları
