Microeconomics Practice Test

10 Questions  I  By Muhammadakram
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 Microeconomics Practice Test
This quiz is designed to check your Economics Knowledge. Answer and detailed explanation is given at the end.

  
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Questions and Answers

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  • 1. 
    What Microeconomics is about?
    • A. 

      Study of Business Environment

    • B. 

      Study of financial position of the economy

    • C. 

      Study of the Economy at Micro Level

    • D. 

      None of the above


  • 2. 
    Law of Demand states that
    • A. 

      With the increase in price Quantity increases

    • B. 

      With the increase in price quantity decreases other things remaining the same.

    • C. 

      Quantity does not change with any increase in price.

    • D. 

      All of the above.


  • 3. 
    The Slope of Indifference Curve indicates
    • A. 

      Marginal Rate of Substitution of x for y

    • B. 

      Prices of x and y

    • C. 

      Slope of the budget line

    • D. 

      Change in prices


  • 4. 
    Production Functions Shows
    • A. 

      Prices of input and output

    • B. 

      Relationship between output and input

    • C. 

      Various combinations of inputs

    • D. 

      All of the above


  • 5. 
    Shape of Total Fixed Cost(TFC) Curve is
    • A. 

      Verticle

    • B. 

      Horizontal

    • C. 

      45 degree line

    • D. 

      None of the above


  • 6. 
    While in Perfect Competition
    • A. 

      Firms are price taker

    • B. 

      Buyers are independant

    • C. 

      Input prices are given

    • D. 

      None of the above


  • 7. 
    Model of Monopolistic Competition (i.e Imperfect competition) is characterized by
    • A. 

      Homogeneous goods

    • B. 

      Differentiated goods

    • C. 

      Substitute Goods

    • D. 

      All of the above


  • 8. 
    Monopoly is a form of market where there is
    • A. 

      large number of buyer

    • B. 

      Small number of buyer

    • C. 

      A single firm controlling the market

    • D. 

      Any of the above


  • 9. 
    In Duopoly, there is/are
    • A. 

      Many firms

    • B. 

      Two firms controlling the Market

    • C. 

      Large corporations

    • D. 

      None of the above


  • 10. 
    Price discrimination is a situation when a producer
    • A. 

      Charges different prices in different markets

    • B. 

      Charges same price

    • C. 

      Charges many prices

    • D. 

      All of the above.


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