Microeconomics MCQ: Multiple Choice Questions

Microeconomics MCQ Multiple Choice Questions

Quiz: Micro-economics Multiple Choice Questions
Type: Objective MCQ
Number of Questions: 50
Updates: Published on 09-09-2021

Read important MCQ or Multiple Choice Objective Questions on Microeconomics. This page contains 50+ MCQ on Microeconomics. New objective question are added during each update. Questions are important for ICAR, IBPS, SAU CET and all other agricultural competition exams.

What is microeconomics?

Answer: Microeconomics is the activities and consumption of production, exchange and distribution.

All activities are associated with individual units at micro level.

Hence, it is the behavioural of individual firms and consumers.

Also read:

Microeconomics MCQ

Answer Key Link(s) After Each 5th MCQ

Question 01. Which one of the following concern is a component of microeconomics?

(a). Single farm.
(b). Price level.
(c). Both a and b.
(d). Economic development of whole economic set-up.

Question 02. A free market economy sees the dominance of..

(a). Public sectors.
(b). Private sectors.
(c). Either a or b.
(d). All of the above.

Question 03. What is the market demand curve for a private good?

Ref. 01

(a). Vertical summation of individual demand curves.
(b). Linear summation of individual demand curves.
(c). Horizontal summation of individual demand curves.
(d). None of the above.

Question 04. A private product should always give..

Ref. 02

(a). Positive return.
(b). Negative return.
(c). Balanced return.
(d). All of the above.

Question 05. Microeconomics stresses on the detailed study of a single unit or individual by using

(a). Rigorous mathematical techniques.
(b). Econometrics.
(c). Production economics.
(d). All of the above.

See answer

Question 06. …. is the branch of microeconomics that deals with household behaviour

(a). Firm theory.
(b). Production theory.
(c). Market theory.
(d). Consumer theory.

Question 07. What is the basic concept of consumer theory?

(a). Expenses.
(b). Utility.
(c). Price of goods.
(d). Supply and demand.

Question 08. Utility is the economic measure of happiness, which … with …. of consumption of certain goods

(a). Increases, decrease.
(b). Decreases, increase.
(c). Increases, increase.
(d). Decreases, decrease.

Question 09. How would you know that what is the need of a consumer?

(a). Bulk market demand.
(b). By utility function.
(c). By production function.
(d). Import behavioural of the local markets.

Question 10. …. is the branch of microeconomics that deals with firm behaviour

(a). Firm theory.
(b). Production theory.
(c). Producer theory.
(d). Yield theory.

See answer

Agricultural Economics MCQ

Question 11. Which firm faces more constraints than others?

(a). A firm with monopoly in market.
(b). A firm with may competitors in market.
(c). Both a and b.
(d). None of the above.

Question 12. A …. must take the structure of the goods market into account while describing a firm’s behaviour

(a). Firm.
(b). Microeconomist.
(c). Producer.
(d). Consumer.

Question 13. …. is the field of microeconomics which studies psychological, social, and cognitive aspects of individual decision making

(a). Behavioural economics.
(b). Labour economics.
(c). Consumer economics.
(d). All of the above.

Question 14. …. is the field of microeconomics which is associated with the detailed study of a single firm

(a). Non-industrial organization.
(b). Individual organization.
(c). Industrial organization.
(d). Multi National Organization.

Question 15. Which one of the following is not a field of microeconomics?

(a). Labour economics.
(b). Industrial organization.
(c). Behavioural economics.
(d). Production economics.

See answer

Question 16. The study of consumption behavior plays a role in..

(a). Microeconomics.
(b). Macroeconomics.
(c). Both a and b.
(d). None of the above.

Question 17. Who is the key people behind microeconomics?

(a). Milton Friedman.
(b). Adam Smith.
(c). Amartya Sen.
(d). Frank Hyneman Knight.

Question 18. F. H. Knight was an..

(a). American economist.
(b). Asian economist.
(c). Australian economist.
(d). None of the above.

Question 19. The monograph …. the classic exposition of microeconomic theory by F. H. Knight

(a). Economic system.
(b). Economic Organisation.
(c). Economic evolution.
(d). Economic development

Question 20. Price system is the relative prices of the various inputs which tend to determine the proportions in which they will be used.

The input is.. 

(a). Material.
(b). Labour.
(c). Machinery.
(d). All of the above.

See answer

Microeconomics Quiz

Question 21. The word microeconomics derives fromm..

(a). Greek language
(b). Latin.
(c). English.
(d). None of the above.

Question 22. The …. problem is the cire of consumer theory

(a). Utility minimisation.
(b). Utility maximisation.
(c). Value maximisation.
(d). Value minimisation

Question 23. In substitution effect..

(a). The rate of consumption falls.
(b). The price of the good rises.
(c). The consumer is monetarily compensated for the effect of the higher price.
(d). All of the above.

Question 24. What is consumption set C?

(a). Consumer doesn’t accept it.
(b). Consumer can’t conceivably consume it.
(c). Consumer can conceivably consume it.
(d). None of the above.

Question 25. The theory of supply and demand usually assumes that markets are.. 

(a). Imperfectly competitive.
(b). Partially competitive..
(c). Perfectly competitive.
(d). Non competitive.

See answer

Question 26. Who gave the difference between microeconomics and macroeconomics?

(a). Ragnar Frisch.
(b). Alfred Marshall.
(c). John M. Keynes.
(d). Friedrich Hayek.

Question 27. Ranger Frisch was a..

(a). Russian economist.
(b). Brazilian economist.
(c). Narwegian economist.
(d). American economist.

Question 28. Who is known for the first use of the term microeconomics?

in a published article was from Pieter de Wolff in 1941, who broadened the term “micro-dynamics” into “microeconomics

(a). Pieter de Wolff.
(b). J. M. Buchanan.
(c). Adam Smith.
(d). No e of the above.

Question 29. Who broadened the term microdynamics into microeconomics?

(a). James Heckman.
(b). T. R. Malthus.
(c). J. S. Mill.
(d). Pieter de Wolff.

Question 30. Which is not a theory of microdynamics?

(a). Cost of production theory of value.
(b). Cost of production.
(c). Price theory.
(d). B2B theory.

See answer

New Questions on Economics

Question 31. Consumer demand theory relates preferences for the.. 

(a). Consumption of goods to the consumption expenditure.
(b). Services to the consumption expenditures.
(c). Both a and b.
(d). None of the above.

Question 32. The relationship between preferences and consumption expenditures..

(a). Relates preference to consumer demand curve.
(b). Relates preference to goods.
(c). Relate preference to product-priority.
(d). None of the above.

Question 33. Which theory uses budget constraint?

(a). Labour theory.
(b). Consumer theory.
(c). Organisation theory.
(d). Production theory.

Question 34. If….

P_x is the price of good X, and P_y is the price of good Y, and m = income.

Then, equation of budget constraints is..

(a). P_x * X + P_y*Y = m
(b). P_y * X + P_x*Y = m
(c). P_x * X + P_y÷Y = m
(d). P_x ÷ X + P_y*Y = m

Question 35. The soft budget constraint was proposed by..

(a). Janos Kornai.
(b). J. S. Mill.
(c). John Hicks.
(d). Gary Becker.

See answer

Question 36. The budget constraint is studied under..

(a). Labour theory.
(b). Price theory.
(c). Consumer demand theory.
(d). Production theory.

Question 37. What is production theory?

(a). It is the study of production
(b). It is the economic process of converting inputs into outputs.
(c). Both a and b.
(d). It is supply system.

Question 38. Which one is not a production activity or resource?

(a). Manufacturing.
(b). Good.
(c). Shipping.
(d). Storing.

Question 39. The cost of production theory of value exclude one of the following things..

(a). Labour input.
(b). Capital.
(c). Taxation.
(d). None of the above.

Question 40. The opportunity cost is closely related to..

(a). Time constraints.
(b). Budget constraints.
(c). Market constraint.
(d). None of the above.

See answer

Mock Test

Question 41. …. is the theory which can give an idea about when to do something as well as when not to do something

(a). Price theory.
(b). Production theory.
(c). Both a and b.
(d). Opportunity cost.

Question 42. Opportunity costs are  …. constraints on behavioural level

(a). Unavoidable
(b). Avoidable.
(c). Either a or b, depends on situations.
(d). None of the above.

Question 43. Price theory uses..

(a). Price.
(b). Demand.
(c). Both a and b.
(d). None of the above.

Question 44. Which one is a microeconomics model?

(a). Supply and demand.
(b). Production and demand.
(c). Production and supply.
(d). All of the above.

Question 45. Which is the situation of market equilibrium?

Description: Quantity supplied .. quantity demanded

(a). Below the demand.
(b). Equals.
(c). Over the demand.
(d). None of the above.

See answer

Questions 46-50: Market Structure

Question 46. In perfect competition.. is a situation in which

(a). There are numerous small firms.
(b). There is productuon of identical products.
(c). All firms compete against each other in a given industry. 
(d). All of the above.

Question 47. Imperfet market results in..

(a). Partial loss.
(b). Partial failure.
(c). Failure.
(d). None failure.

Question 48. What is natural monopoly?

(a). One producer can produce output at a lower cost and many small producers are present.
(b). One producer can produce output at a higher cost and many small producers are present.
(c). One producer can produce output at a lower cost and no small producers are present.
(d). One producer can produce output at a higher cost and no small producers are present.

Question 49. Duopoly is a case of..

(a). Monopoly.
(b). Oligopoly.
(c). Monopsony.
(d). Oligopsony.

Question 50. Which defines monopsony?

(a). One seller many buyers.
(b). One buyer one seller.
(c). There is a contract between a seller and a buyer.
(d). One buyer many sellers.

See answer

For: Microeconomics MCQ Multiple Choice Questions

External Links:

Explanations:

11. A firm with monopoly in market will face more constraints than a firm with many competitors in market.

References:

01. Public Goods: Demand. Amos-WEB Encyclonomic, WEB-pedia.

02. Walter, N. (2004). Intermediate Microeconomics And Its Application. USA: S-W, a division of Thomson Learning. p. 59.


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