Economics MCQs

Option A: players are better of to act independently

Option B: monopoly is better than competition

Option C: people will always cheat

Option D: players are better off if they co-operate

Correct Answer: players are better off if they co-operate ✔

Option A: The oligopolist believes that competitors will match output increase but not output reduction

Option B: The oligopolist believes that competitors will match price increase but not output reduction

Option C: The oligopolist believers that competitors will match price cuts but not price rises

Option D: The oligopolist believes that competitors will match price increase but not output increase

Correct Answer: The oligopolist believers that competitors will match price cuts but not price rises ✔

Option A: long run marginal cost

Option B: short run marginal cost

Option C: long run average cost

Option D: long run marginal cost

Correct Answer: long run average cost ✔

Option A: research

Option B: cost-saving

Option C: technical advance

Option D: all of the above

Correct Answer: all of the above ✔

Option A: produce less at a lower price

Option B: produce more at a lower price

Option C: produce less at a higher price

Option D: produce less at a lower price

Correct Answer: produce less at a higher price ✔

Option A: Whether there is perfect or imperfect information

Option B: elasticities of demand and supply

Option C: how many producers there are:

Option D: who is legally obliged to pay the tax

Correct Answer: elasticities of demand and supply ✔

Option A: behaviour of shifting the tax to another party.

Option B: structure of the tax

Option C: ultimate distribution of a tax’s burden.

Option D: measure of the impact the tax has on employment and output

Correct Answer: C. ultimate distribution of a tax’s burden. ✔

Option A: Specific

Option B: Exercise duty

Option C: Direct

Option D: Ad valorem

Correct Answer: Ad valorem ✔

Option A: goods are sold at prices above legal or official price.

Option B: buyers and/or sellers are not paying taxes as they should

Option C: illegal substances are sold

Option D: transactions are not recorded in the GDP figures.

Correct Answer: goods are sold at prices above legal or official price. ✔

Option A: quantity demanded will be greater than quantity supplied

Option B: quantity demanded will be less than quantity supplied

Option C: demand will be less than supply.

Option D: quantity demanded will equal quantity supplied .

Correct Answer: quantity demanded will be greater than quantity supplied ✔

Option A: supply exceeds demand

Option B: a surplus exists

Option C: there is perfectly inelastic demand for the good

Option D: demand exceeds supply

Correct Answer: demand exceeds supply ✔

Option A: a maximum price usually set by government that sellers may charge for a good

Option B: the different between the initial equilibrium price and the equilibrium price after a decrease in supply

Option C: a minimum price usually set by government that sellers must charge for a good

Option D: a minimum price that consumers are willing to pay for a good.

Correct Answer: a maximum price usually set by government that sellers may charge for a good ✔

Option A: The government sells assets to a the private sector

Option B: The government bans a product

Option C: The government takes control of an industry

Option D: The government taxes a product to a raise its price

Correct Answer: The government takes control of an industry ✔

Option A: There is under-consumption in the free market

Option B: There is over consumption in the free market

Option C: The government may tax to decrease production

Option D: Society could be made off it less was produced

Correct Answer: There is under-consumption in the free market ✔

Option A: Supply is price elastic

Option B: Demand is price inelastic

Option C: The government buys up all the excess production

Option D: All output must be sold at a maximum price

Correct Answer: Demand is price inelastic ✔

Option A: Not provided in the free market economy

Option B: Under provided in the free market economy

Option C: Over provided in the free market economy

Option D: Provided free

Correct Answer: Under provided in the free market economy ✔

Option A: There is excess equilibrium

Option B: There is excess supply

Option C: There is excess demand

Option D: There is equilibrium

Correct Answer: There is excess demand ✔

Option A: Be under provided in the free market

Option B: Be over provided in the free market

Option C: Not be provided in the free market

Option D: Has no opportunity cost

Correct Answer: Not be provided in the free market ✔

Option A: Increase equilibrium price and quantity

Option B: Decrease equilibrium price and quantity

Option C: Increase equilibrium price and decrease quantity

Option D: Decrease equilibrium price and increase quantity

Correct Answer: Decrease equilibrium price and increase quantity ✔

Option A: The price elasticity of supply is – 3

Option B: The price elasticity of supply is – 0.2

Option C: The price elasticity of supply is – 2

Option D: The price elasticity of supply is infinity

Correct Answer: A. The price elasticity of supply is – 3 ✔

Option A: The price elasticity of supply is price inelastic

Option B: The price elasticity of supply is price elastic

Option C: The price elasticity of supply is perfectly elastic

Option D: The price elasticity of supply is infinity

Correct Answer: The price elasticity of supply is infinity ✔

Option A: The price consumers are willing to pray for a unit

Option B: The cost of providing a unit

Option C: The profits made by a firm

Option D: The difference the price a consumer pays for an item and the price he/she is willing to pay

Correct Answer: The difference the price a consumer pays for an item and the price he/she is willing to pay ✔

Option A: A change in technology

Option B: A change in the number of producers

Option C: A shift in demand

Option D: A change in costs

Correct Answer: A shift in demand ✔

Option A: A change in income

Option B: A change in the number of buyers

Option C: A change in advertising

Option D: A shift in supply

Correct Answer: A shift in supply ✔

Option A: An fall in demand

Option B: An increase in supply

Option C: improvements in production technology

Option D: An increase in demand

Correct Answer: An increase in demand ✔

Option A: Lead to a movement along the supply curve

Option B: Shift the demand curve

Option C: Shift the supply curve

Option D: Lead to an extension of supply

Correct Answer: Shift the supply curve ✔

Option A: A higher equilibrium price and output

Option B: A lower equilibrium price and higher output

Option C: A lower equilibrium price and output

Option D: A higher equilibrium price and lower output

Correct Answer: A higher equilibrium price and output ✔

Option A: The impact on both price and quantity is ambiguous

Option B: Price will decrease, quantity is ambiguous.

Option C: price will increase, quantity will decrease

Option D: price will increase, quantity is ambiguous.

Correct Answer: price will increase, quantity is ambiguous. ✔

Option A: price will decrease, quantity is ambiguous

Option B: The impact on both price and quantity is ambiguous.

Option C: Price will increase, quantity will increase

Option D: price will increase, quantity will decrease

Correct Answer: price will increase, quantity is ambiguous. ✔

Option A: the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.

Option B: the equilibrium quantity to rise and the equilibrium price to rise

Option C: the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous

Option D: the equilibrium quantity to rise and the equilibrium price to fall

Correct Answer: the equilibrium quantity to rise and the equilibrium price to fall ✔

Option A: an increase in the equilibrium price and quantity

Option B: a decrease in the equilibrium price and an increase in the equilibrium quantity

Option C: none of these answers

Option D: a decrease in the equilibrium price and quantity.

Correct Answer: an increase in the equilibrium price and quantity ✔

Option A: there is a shortage and the price will fall

Option B: the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged

Option C: there is surplus and the price will rise

Option D: there is a shortage and the price will rise

Correct Answer: the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged ✔

Option A: there is a surplus and the price will rise

Option B: there is a shortage and the price will fall

Option C: there is a shortage and the price will rise

Option D: The quantity demanded is equal to the quantity supplied and the price remains unchanged

Correct Answer: there is a surplus and the price will fall ✔

Option A: an increase in the price of watches

Option B: none of these answers

Option C: a decrease in the price of watch batteries if watch batteries and watches are complements

Option D: a decrease in consumer incomes if watches are a normal good

Correct Answer: none of these answers ✔

Option A: a normal good

Option B: none of these answers

Option C: an inferior good

Option D: a substitute good

Correct Answer: an inferior good ✔

Option A: None of these answers

Option B: decreases the quantity supplied of that good

Option C: decreases the quantity demanded for that good

Option D: increases the quantity supplied of that good

Correct Answer: decreases the quantity supplied of that good ✔

Option A: firms that set their own prices

Option B: only one seller.

Option C: at least a few sellers.

Option D: many buyers and sellers.

Correct Answer: many buyers and sellers. ✔

Option A: Geothermy

Option B: Demography

Option C: Ethnography

Option D: Hemos-popography

Correct Answer: Demography ✔

Option A: terragraphic segmentation

Option B: fermagraphic segmentation

Option C: geothermy segmentation

Option D: geodemographic segmentation

Correct Answer: geodemographic segmentation ✔

Option A: To protect companies form each other

Option B: To protect consumers from unfair business practices

Option C: To protect the interests of society

Option D: To protect businesses from unfair consumer demands

Correct Answer: To protect the interests of society ✔

Option A: 1940s

Option B: 1950s

Option C: 1960s and 1970s

Option D: mid-1980s

Correct Answer: 1960s and 1970s ✔

Option A: internal sources

Option B: customers

Option C: competitors

Option D: the local library

Correct Answer: the local library ✔

Option A: They did not investigate pricing correctly and priced the product too high

Option B: They did not investigate dealer reaction and had inadequate distribution

Option C: They defined their marketing research problem too narrowly

Option D: They failed to account for the Pepsi Challenge taste test in their marketing efforts

Correct Answer: They defined their marketing research problem too narrowly ✔

Option A: Territorial sales force

Option B: Product sales force

Option C: Customer sales force

Option D: Hybrid sales force

Correct Answer: Territorial sales force ✔

Option A: new brand strategy

Option B: line extension strategy

Option C: multiband strategy

Option D: brand extension strategy

Correct Answer: brand extension strategy ✔

Option A: market penetrations

Option B: market development

Option C: product development

Option D: diversification

Correct Answer: diversification ✔

Option A: A targeted level of promotional support

Option B: A targeted level of customer service at the least cost

Option C: A targeted level of transportation expense ratio

Option D: A targeted level of field support

Correct Answer: A targeted level of customer service at the least cost ✔

Option A: product concept

Option B: production concept

Option C: production cost expansion concept

Option D: marketing concept

Correct Answer: production concept ✔

Option A: Idea generation

Option B: Concept development and testing

Option C: Idea screening

Option D: Brainstorming

Correct Answer: Idea screening ✔

Option A: undifferentiated marketing

Option B: differentiated marketing

Option C: concentrated marketing

Option D: turbo marketing

Correct Answer: concentrated marketing ✔

Option A: territorial salesforce

Option B: product salesforce

Option C: customer salesforce

Option D: retail salesforce

Correct Answer: product salesforce ✔

Option A: direct exporting

Option B: indirect exporting

Option C: licensing

Option D: joint venturing

Correct Answer: joint venturing ✔

Option A: product development

Option B: commercialization

Option C: marketing strategy

Option D: business analysis

Correct Answer: product development ✔

Option A: Licensed brands

Option B: Manufacturer’s brand

Option C: Private brand

Option D: Co-brand

Correct Answer: Licensed brands ✔

Option A: the presence of many strong and aggressive competitors

Option B: the likelihood of government monitoring

Option C: actual or potential substitute products

Option D: the power of buyers in the segments

Correct Answer: the likelihood of government monitoring ✔

Option A: Protectionism

Option B: exchange controls

Option C: exchange facilitators

Option D: nontariff trade barriers

Correct Answer: nontariff trade barriers ✔

Option A: Newspapers

Option B: Television

Option C: Direct Mail

Option D: Radio

Correct Answer: Newspapers ✔

Option A: Direct Mail

Option B: Outdoor

Option C: Online

Option D: Radio

Correct Answer: Online ✔

Option A: become a vehicle for pitching the sponsor’s products

Option B: become a vehicle for pitching the sponsor’s products

Option C: become a means for raising prices

Option D: become a means of unfair competition

Correct Answer: A. become a vehicle for pitching the sponsor’s products ✔

Option A: environment

Option B: response

Option C: stimuli

Option D: buying center

Correct Answer: buying center ✔

Option A: discount

Option B: allowance

Option C: premium

Option D: rebate

Correct Answer: allowance ✔

Option A: reseller

Option B: business

Option C: government

Option D: service

Correct Answer: reseller ✔

Option A: Hispanics and Asians

Option B: African Americans

Option C: Western Europeans

Option D: Middle Eastern

Correct Answer: Hispanics and Asians ✔

Option A: 25

Option B: 50

Option C: 75

Option D: 100

Correct Answer: 50 ✔

Option A: intangibility

Option B: inseparability

Option C: variability

Option D: perishability

Correct Answer: perishability ✔

Option A: Concept development and testing

Option B: Commercialization

Option C: Business analysis

Option D: Marketing strategy development

Correct Answer: Business analysis ✔

Option A: rule

Option B: attitude

Option C: belief

Option D: cute

Correct Answer: belief ✔

Option A: Enlightened marketing

Option B: Myopic marketing

Option C: Fundamental marketing

Option D: Conceptual marketing

Correct Answer: Enlightened marketing ✔

Option A: they can generate more advertising

Option B: they can please top management

Option C: they can gain tax advantages

Option D: they can set lower prices that that result in greater sales and profits

Correct Answer: they can set lower prices that that result in greater sales and profits ✔

Option A: harming consumers through high prices

Option B: harming consumers through deceptive practices

Option C: harming consumers through high-pressure selling

Option D: harming consumers through too many product choices

Correct Answer: harming consumers through too many product choices ✔

Option A: quantity discount

Option B: cash discount

Option C: seasonal discount

Option D: trade discount

Correct Answer: quantity discount ✔

Option A: loyalty and perseverance

Option B: spot selling and old product rejuvenation

Option C: high sales performance and encourage capturing new accounts

Option D: high pressure situations and competitive reaction

Correct Answer: high sales performance and encourage capturing new accounts ✔

Option A: The marketing concept

Option B: The product concept

Option C: The selling concept

Option D: The societal marketing concept

Correct Answer: The societal marketing concept ✔

Option A: marketing provides a guiding philosophy

Option B: marketing is the only discipline that can provide a formal structure for the planning effort

Option C: marketing provides inputs to strategic planners by helping to identify attractive market opportunities

Option D: within individual business units marketing designs strategies for reaching the unit’s objectives

Correct Answer: marketing is the only discipline that can provide a formal structure for the planning effort ✔

Option A: natural

Option B: demographic

Option C: economic

Option D: technological

Correct Answer: technological ✔

Option A: motive

Option B: want

Option C: demand

Option D: requirement

Correct Answer: motive ✔

Option A: overcome losses

Option B: use its strengths to take advantage of attractive opportunities in the environment

Option C: avoid paying taxes

Option D: avoid the expense of costly research and development while still getting the benefits

Correct Answer: use its strengths to take advantage of attractive opportunities in the environment ✔

Option A: wife

Option B: husband

Option C: teenage children

Option D: grandparent

Correct Answer: wife ✔

Option A: push strategy

Option B: pull strategy

Option C: blocking strategy

Option D: integrated strategy

Correct Answer: push strategy ✔

Option A: Good-value strategy

Option B: Premium strategy

Option C: Overcharging strategy

Option D: Snob strategy

Correct Answer: Overcharging strategy ✔

Option A: meaningful

Option B: distinctive

Option C: believable

Option D: remembered

Correct Answer: distinctive ✔

Option A: The percentage spent on food rises

Option B: The percentage spent on housing increases

Option C: The percentage spent on other categories increase

Option D: The percentage spent on savings remains constant

Correct Answer: The percentage spent on other categories increase ✔

Option A: retailer

Option B: wholesaler

Option C: distribution channel

Option D: logistics

Correct Answer: distribution channel ✔

Option A: Intensive distribution

Option B: Exclusive distribution

Option C: Selective distribution

Option D: Open distribution

Correct Answer: Exclusive distribution ✔

Option A: master salespersons

Option B: sales assistants

Option C: technical support persons

Option D: telemarketers

Correct Answer: telemarketers ✔

Option A: decline stage

Option B: introduction stage

Option C: growth stage

Option D: maturity stage

Correct Answer: introduction stage ✔

Option A: Nader’s raiders

Option B: The green movement

Option C: Governmental regulation

Option D: International competition

Correct Answer: The green movement ✔

Option A: licensed brand

Option B: manufacturer’s brand private brand

Option C: private brand

Option D: co-brand

Correct Answer: private brand ✔

Option A: Intangibility

Option B: Inseparability

Option C: Variability

Option D: Perishability

Correct Answer: Inseparability ✔

Option A: lower prices

Option B: increase promotion both at home and abroad

Option C: continuously improve their products at home

Option D: join into cartels at home

Correct Answer: continuously improve their products at home ✔

Option A: Innovative marketing

Option B: Consumer oriented marketing

Option C: value marketing

Option D: Sense of mission marketing

Correct Answer: Innovative marketing ✔

Option A: Online infomercials

Option B: Online ads

Option C: Online broadcasts

Option D: Online bullets

Correct Answer: Online ads ✔

Option A: Product extensions

Option B: Line extensions

Option C: Brand extensions

Option D: New brands

Correct Answer: New brands ✔

Option A: factory outlet

Option B: super specialty store

Option C: seconds store

Option D: warehouse club

Correct Answer: warehouse club ✔

Option A: browsers

Option B: Webcasters

Option C: search engines

Option D: software

Correct Answer: search engines ✔

Option A: idea

Option B: demand

Option C: product

Option D: service

Correct Answer: product ✔

Option A: internal marketing

Option B: service-profit chains

Option C: interactive marketing

Option D: service differentiation

Correct Answer: service-profit chains ✔

Option A: Advertising

Option B: Personal selling

Option C: Public relations

Option D: Sales promotion

Correct Answer: Advertising ✔

Option A: retrieval systems

Option B: marketing research reports

Option C: flow diagrams and PERT charts

Option D: internal databases

Correct Answer: internal databases ✔

Option A: gender segmentation

Option B: benefit segmentation

Option C: occasion segmentation

Option D: age and lief-cycle segmentation

Correct Answer: occasion segmentation ✔