Here are some MCQs on important concepts in Microeconomics, Macroeconomics
1. Microeconomics is concerned with the study of:
a) Individual consumers and firms
b) National income and employment
c) Aggregate demand and supply
d) Government policies
2. The law of demand states that, ceteris paribus:
a) As price decreases, quantity demanded decreases
b) As price increases, quantity demanded increases
c) As price decreases, quantity demanded increases
d) As price increases, quantity demanded decreases
3. The concept of elasticity measures:
a) The responsiveness of quantity demanded to changes in price
b) The responsiveness of quantity supplied to changes in price
c) The responsiveness of demand to changes in income
d) The responsiveness of supply to changes in income
4. When the price of a substitute good increases, what happens to the demand for the original good?
a) It increases
b) It decreases
c) It remains unchanged
d) It depends on the income of consumers
5. In the long run, a firm operating in a perfectly competitive market will earn:
a) Positive economic profits
b) Zero economic profits
c) Negative economic profits
d) Variable economic profits
