Microeconomics MCQ

Microeconomics MCQ Questions and Answers Pdf:

  • Microeconomics is branch of economics which studies the economic behavior of the most basic units (individuals, firms) in an economic system. 
  • Microeconomics has great importance to the study of the influence of supply and demand on individuals, to achieve transactions, and to form price equilibrium in the market.
  • Microeconomics is concerned with how people’s decisions and actions affect the supply and demand for goods and services, who is responsible for determining prices, or, conversely, how prices determine how much goods and services are supplied and demanded. 
  • Microeconomics is mainly includes in equilibrium price theory, consumption economics , productivity economics, firm equilibrium theory and welfare economics.
  • The research method of microeconomics is a quantitative analysis, that is, the study of how the single value of an economic variable is determined

Microeconomics MCQ Questions with Answers Pdf : 

1. Which of the following is studied under microeconomics?

(1) production, 

(2) exchange,

(3) consumption

(4) All of these 

Answer: 4

2. What is known as the study of individual units?

(1) Macroeconomics

(2) Microeconomics

(3) Income and Employment Theory

(4) Development economics

Answer: 2

3. Which of the following is the best example of microeconomic topic?

(1) Supply, 

(2) Demand,  

(3) Prices of goods

(4) All of these 

Answer: 4

4. Which of the following is studied under Micro Economics ?

(1) Individual unit

(2) Economic Aggregate

(3) National Income

(4) Production 

Answer: 4 

5. For a monopoly firm, which of the following equalities is always true?

(1) Price = average revenue

(2) Price = marginal revenue

(3) Price = total revenue

(4) Marginal revenue = marginal cost

Answer: 1

6. When a firm operates with excess capacity_________

(1) it must be a perfectly competitive firm

(2) it must be a monopolistically competitive firm

(3) additional production would increase the average total cost

(4) additional production would lower the average total cost

Answer: 4

7. Oligopolies can end up looking like competitive markets if the number of firms is________

(1) small and they all cooperate

(2) small and they do not cooperate

(3) large and they all cooperate

(4) large and they do not cooperate

Answer: 4

8. Which of the following would shift a market labor supply curve to the left?

(1) Labor-augmenting technology

(2) A change in worker tastes so that workers want to retire later

(3) A decrease in the supply of factors such as capital

(4) An increase in the wage paid to workers in a competing market

Answer: 4

9. Which of the following Is a type of economic activities ?

(1) Production

(2) Consumption

(3) Exchange and Investment

(4) All of these

Answer: 4

10. In India, inflation measured by the –

(1) Wholesale Price Index Number

(2) Consumer Price Index for urban non-manual workers

(3) Consumer Price Index for agricultural labourers

(4) National Income Deflator

Answer: 1

11. Which of the following is not correct with respect to Consumer Price Index?

(1) It measures the average change in prices of a basket of goods

(2) It is the most widely used measure of inflation

(3) It cover professionals, self-employed, poor, unemployed and retired people in the country 

(4) CPI-U is the Consumer Price Index for Rural Consumers.

Answer: 4

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