Microeconomics MCQ Multiple Choice Questions Answers

Q: 1. Normally, the natural economy is characterized by:

Correct Answer is: the preponderance of product exchange

Q: 2. The profit maximization condition for a firm in a market with monopolistic competition is the following (MR is marginal revenue, MC is marginal cost, P is price, ATC is average total cost, TR is total revenue):

Correct Answer is: TR to be maximum

Q: 3. Which of the following can be considered as the basic features of public goods:

Correct Answer is: may be positive or negative

Q: 4. Which of the following conditions indicate that a good is produced under perfect competition:

Correct Answer is: total supply is inelastic

Q: 5. Which of the following features define human needs:

Correct Answer is: are unlimited in capacity

Q: 6. Which of the following solutions are not part of the ways of internalizing externalities:

Correct Answer is: the association of the negative externality manufacturer with the receptor of such an effect

Q: 7. Which of the following statements about monopoly is true:

Correct Answer is: input barriers are low

Q: 11. Choose the false statement:

Correct Answer is: for a company whose production process involves making two goods, one main and the other secondary, if the price of the main good increases, - caeteris paribus - the supply onthe secondary goods market will increase (and vice versa)

Q: 12. For a rational consumer who has to choose between two goods in the context of budget constraints, the price change of one of the goods, caeteris paribus, will determine:

Correct Answer is: a parallel shift of budget line to the right

Q: 13. If the coefficient of income elasticity of demand is higher than 1 and the revenue increases, the share of expenditures for commodity X in total expenditure:

Correct Answer is: can not be determined

Microeconomics MCQs are essential practice tools for students and exam aspirants. These multiple-choice questions cover key concepts and help reinforce your understanding of microeconomic principles.

About Microeconomics MCQ Questions

Microeconomics MCQs delve into the core of individual and firm-level economic decisions. Topics include supply and demand, market structures, consumer behavior, and production costs. Practicing these questions will enhance your grasp of microeconomic theories and their real-world applications.

Why Practice Microeconomics Objective Questions?

Practicing Microeconomics MCQs offers several benefits. They help you prepare for school and college exams, competitive exams, and job interviews. Regular practice improves your problem-solving skills, reinforces key concepts, and boosts your confidence in handling microeconomic questions.

Who Should Use These MCQs?

Microeconomics MCQ Questions for Practice

1. Normally, the natural economy is characterized by:

price formation through complex mechanisms
perfect competition
the preponderance of product exchange
the satisfaction of the individual and community needs of its own production

2. The profit maximization condition for a firm in a market with monopolistic competition is the following (MR is marginal revenue, MC is marginal cost, P is price, ATC is average total cost, TR is total revenue):

MR = MC
MC = P
MR = ATC
TR to be maximum

3. Which of the following can be considered as the basic features of public goods:

are state-owned
are characterized by non-excludability and non-rivalry
are characterized by excludability and rivalry
may be positive or negative

4. Which of the following conditions indicate that a good is produced under perfect competition:

producers profits are high
producers profits are small
total supply is inelastic
individual demand is perfectly elastic

5. Which of the following features define human needs:

are not concurrent
do not disappear momentarily if they are satisfied
are unlimited in capacity
are unlimited in number

6. Which of the following solutions are not part of the ways of internalizing externalities:

the imposition of fines on the producer of negative externalities
the introduction of taxes and duties that bring private costs to the level of social costs
closure of companies producing positive or negative externalities
the association of the negative externality manufacturer with the receptor of such an effect

7. Which of the following statements about monopoly is true:

there are several companies producing a specific product
there is only one producing company, but the product has close substitutes
there are no competitors on the relevant market
input barriers are low

8. An economic agent contracts a loan of 15.000 lei, which he will repay in three equal annual installments. What will be the total interest paid, knowing that the annual interest rate is 12% per year?

3600 lei
1800 lei
5400 lei
1500 lei

9. An economic agent makes a bank deposit of 10.000 lei with an interest rate of 5%. What will be the amount in the bank after 2 years, if the economic agent does not make withdrawals from the account created during this period?

11000 lei
1000 lei
11025 lei
500 lei

10. Calculate the average fixed cost (AFC), for a level of production Q = 20, knowing that the total cost function is: TC = 200 + 3Q + 2Q2

1060
200
20
10

11. Choose the false statement:

in general, the demand for necessity goods is less elastic than demand for luxury goods
if the price and the producers income are directly proportional, the demand is elastic
after a long period of time since the change in the price of the good A, supply becomes more elastic
for a company whose production process involves making two goods, one main and the other secondary, if the price of the main good increases, - caeteris paribus - the supply onthe secondary goods market will increase (and vice versa)

12. For a rational consumer who has to choose between two goods in the context of budget constraints, the price change of one of the goods, caeteris paribus, will determine:

a parallel shift of the budget line to the left
a change in the slope of the budget line
no change in the budget line
a parallel shift of budget line to the right

13. If the coefficient of income elasticity of demand is higher than 1 and the revenue increases, the share of expenditures for commodity X in total expenditure:

will increase
will decrease
will remain constant
can not be determined

14. If the demand curve for product A moves to the right, and the price of product B decreases, it can be concluded that

A and B are substitute goods
A and B are complementary goods
A is an inferior good, and B is a superior good
Both goods A and B are inferior

15. If the demand for agricultural products is inelastic:

as the prices decrease, the revenues earned by producers increase
as the prices decrease, the revenues earned by producers decrease
rising prices do not lead to differentiation in producers incomes
the percentage decrease in prices is lower than the percentage increase in demand

16. On the market with perfect competition

the firm is a price-taker, meaning, it takes over the market price
the firm is a price-maker, meaning, it determines the market price
the companiesâ€™ products are differentiated
input barriers are minimal, and exit barriers are maximal

17. Suppose the price of a good decreases by 10% and the quantity demanded for a certain period of time increases by 15%. In these conditions:

the revenues earned by producers decrease
the revenues earned by producers increase
the revenues are not influenced in any way
the companys expenses rise

18. Suppose the supply for product A is perfectly elastic. If the demand for this product increases:

the equilibrium price and quantity will increase
the equilibrium price and quantity will decrease
the equilibrium quantity will increase but the price will not change
the equilibrium price will increase but the quantity will not change

19. The following data is given for a company: material costs 89 mil; working capital 45 mil; indirect salaries 10 mil; fixed costs 90 mil.; variable costs 52 mil. Calculate fixed material costs and depreciation:

60 and 64
70 and 56
80 and 44
89 and 45

20. The indifference curve means:

equal consumption of two goods
equal utility from the consumption of two combinations of goods
equal consumer income
equal prices of the goods consumed

21. The points located at the intersection of the budget line with the coordinate axes mean:

the consumer does not spend all his income
the consumer spends all his income for only one good
the consumer spends absolutely nothing
these are points impossible to reach by the consumer

22. The price of the product A was reduced from 100 to 90 lei and, as a result, the quantity demanded has increased from 70 to 75 units. The demand is:

inelastic
elastic
unit elastic
can not be determined from the given information

23. The total utility coincides with the marginal utility:

for the first unit consumed
only for the irrational consumer
at the level of the last unit consumed
at the saturation point

24. There are differences between monopolistic and perfect competition regarding:

market entry
the number of sellers and buyers
the market power of competitors
homogeneity of products

25. Which of the following statements are false?

information, the entrepreneurs ability, technical progress are neo-factors of production
according to the stages of the circular flow of the companys capital, it takes three forms money, capital goods and commodity
fixed capital depreciation is only due to physical deterioration
the factors of production are resources attracted and used in economic activity

26. Which of the following statements is false:

perfect competition involves many sellers of standardized products
monopolistic competition involves many sellers of homogeneous products
the oligopoly involves several producers of standardized or differentiated products
monopoly involves a single product for which there are no close substitutes

Microeconomics MCQ Multiple Choice Questions Answers | Quiz for Practice

About Microeconomics MCQ Questions

Why Practice Microeconomics Objective Questions?

Who Should Use These MCQs?

Microeconomics MCQ Questions for Practice

1. Normally, the natural economy is characterized by:

2. The profit maximization condition for a firm in a market with monopolistic competition is the following (MR is marginal revenue, MC is marginal cost, P is price, ATC is average total cost, TR is total revenue):

3. Which of the following can be considered as the basic features of public goods:

4. Which of the following conditions indicate that a good is produced under perfect competition:

5. Which of the following features define human needs:

6. Which of the following solutions are not part of the ways of internalizing externalities:

7. Which of the following statements about monopoly is true:

8. An economic agent contracts a loan of 15.000 lei, which he will repay in three equal annual installments. What will be the total interest paid, knowing that the annual interest rate is 12% per year?

9. An economic agent makes a bank deposit of 10.000 lei with an interest rate of 5%. What will be the amount in the bank after 2 years, if the economic agent does not make withdrawals from the account created during this period?

10. Calculate the average fixed cost (AFC), for a level of production Q = 20, knowing that the total cost function is: TC = 200 + 3Q + 2Q2

11. Choose the false statement:

12. For a rational consumer who has to choose between two goods in the context of budget constraints, the price change of one of the goods, caeteris paribus, will determine:

13. If the coefficient of income elasticity of demand is higher than 1 and the revenue increases, the share of expenditures for commodity X in total expenditure:

14. If the demand curve for product A moves to the right, and the price of product B decreases, it can be concluded that

15. If the demand for agricultural products is inelastic:

16. On the market with perfect competition

17. Suppose the price of a good decreases by 10% and the quantity demanded for a certain period of time increases by 15%. In these conditions:

18. Suppose the supply for product A is perfectly elastic. If the demand for this product increases:

19. The following data is given for a company: material costs 89 mil; working capital 45 mil; indirect salaries 10 mil; fixed costs 90 mil.; variable costs 52 mil. Calculate fixed material costs and depreciation:

20. The indifference curve means:

21. The points located at the intersection of the budget line with the coordinate axes mean:

22. The price of the product A was reduced from 100 to 90 lei and, as a result, the quantity demanded has increased from 70 to 75 units. The demand is:

23. The total utility coincides with the marginal utility:

24. There are differences between monopolistic and perfect competition regarding:

25. Which of the following statements are false?

26. Which of the following statements is false:

Your Score

Related Quiz Topics

Recent Articles

Looking to post on our portal?

Microeconomics MCQ Multiple Choice Questions Answers | Quiz for Practice

About Microeconomics MCQ Questions

Why Practice Microeconomics Objective Questions?

Who Should Use These MCQs?

Microeconomics MCQ Questions for Practice

1. Normally, the natural economy is characterized by:

2. The profit maximization condition for a firm in a market with monopolistic competition is the following (MR is marginal revenue, MC is marginal cost, P is price, ATC is average total cost, TR is total revenue):

3. Which of the following can be considered as the basic features of public goods:

4. Which of the following conditions indicate that a good is produced under perfect competition:

5. Which of the following features define human needs:

6. Which of the following solutions are not part of the ways of internalizing externalities:

7. Which of the following statements about monopoly is true:

8. An economic agent contracts a loan of 15.000 lei, which he will repay in three equal annual installments. What will be the total interest paid, knowing that the annual interest rate is 12% per year?

9. An economic agent makes a bank deposit of 10.000 lei with an interest rate of 5%. What will be the amount in the bank after 2 years, if the economic agent does not make withdrawals from the account created during this period?

10. Calculate the average fixed cost (AFC), for a level of production Q = 20, knowing that the total cost function is: TC = 200 + 3Q + 2Q2

11. Choose the false statement:

12. For a rational consumer who has to choose between two goods in the context of budget constraints, the price change of one of the goods, caeteris paribus, will determine:

13. If the coefficient of income elasticity of demand is higher than 1 and the revenue increases, the share of expenditures for commodity X in total expenditure:

14. If the demand curve for product A moves to the right, and the price of product B decreases, it can be concluded that

15. If the demand for agricultural products is inelastic:

16. On the market with perfect competition

17. Suppose the price of a good decreases by 10% and the quantity demanded for a certain period of time increases by 15%. In these conditions:

18. Suppose the supply for product A is perfectly elastic. If the demand for this product increases:

19. The following data is given for a company: material costs 89 mil; working capital 45 mil; indirect salaries 10 mil; fixed costs 90 mil.; variable costs 52 mil. Calculate fixed material costs and depreciation:

20. The indifference curve means:

21. The points located at the intersection of the budget line with the coordinate axes mean:

22. The price of the product A was reduced from 100 to 90 lei and, as a result, the quantity demanded has increased from 70 to 75 units. The demand is:

23. The total utility coincides with the marginal utility:

24. There are differences between monopolistic and perfect competition regarding:

25. Which of the following statements are false?

26. Which of the following statements is false:

Your Score

Related Quiz Topics

Recent Articles

Login at Quizforum