What does UK spending on motoring as a percentage of household expenditure indicate about motoring?
Correct answer A. A superior good
Topic / 20 questions
Applied Microeconomics MCQs
Applied Microeconomics MCQs cover how microeconomic theory is used to study real policy issues such as mergers, competition law, regulation and privatisation. They suit economics students and civil service candidates, and every question shows its correct answer instantly, so you can test your understanding of each concept.
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
What does the evidence suggest about the price elasticity of demand for motoring?
Correct answer A. Inelastic
Which city has a transport policy in which car licences are very expensive, vehicle entry to the city centre is tightly restricted, road pricing is being introduced and modern, cheap rail transport is being expanded?
Correct answer A. Singapore
Advertisement
According to its supporters, where does the real gain from antimonopoly enforcement lie?
Correct answer D. It deters firms from engaging in practices such as collusion, price-fixing and deceptive advertising
Which firms join together in a horizontal merger?
Correct answer B. Firms producing the same product
A paper manufacturer merges with a book publisher. What type of merger is this?
Correct answer B. A vertical merger
What is a merger called when firms at different stages of the same production process combine?
Correct answer C. Vertical merger
A firm that charges different customers different prices for the same product is engaging in what?
Correct answer C. Price discrimination
What is privatisation the transfer of?
Correct answer A. Government businesses to the private sector
Advertisement
What does deregulation involve the government doing?
Correct answer C. Removes barriers to entry and minimum product quality standards
In country X, consumers can now buy electricity from a gas company and gas from an electricity company. What is this called?
Correct answer B. Making markets contestable
What do economists mean by regulatory capture of the firms being regulated?
Correct answer D. Persuade the regulator to operate in the industry's interests
In which of these countries did car ownership per thousand people fall between 1990 and 1999?
Correct answer A. USA
Car use generates external benefits that are ____ and external costs that are ____. Which pair fits?
Correct answer A. Low; high
On what proposition are antimonopoly laws based?
Correct answer A. Competition is the best way to achieve efficiency
Advertisement
What kind of firms combine in a conglomerate merger?
Correct answer C. Firms producing unrelated products
Why are sales staff often eager to sell extended warranties?
Correct answer C. They are paid commission on each extended warranty they sell
In the UK electricity industry, some parts are a ____ while other parts are ____. Which pair completes the statement?
Correct answer A. Natural monopoly; potentially competitive
Antimonopoly legislation aims to ____ competition, whereas market regulation is used to ____ competition. Which words complete the sentence?
Correct answer B. Promote; restrict
According to the theory of the second best, what price should a privatised industry charge when perfect competition is absent?
Correct answer A. P = MC + Z
About Applied Microeconomics MCQs
This topic takes the theory of firms and markets into the policy arena. Questions cover types of mergers, where a paper producer joining a book publisher is a vertical merger, and the purpose of antimonopoly or competition legislation to promote competition and protect consumers. You will also see deregulation as the removal of government rules on an industry, privatisation as the transfer of ownership from the public to the private sector, and the incentives behind selling extended warranties. These applications appear in CSS economics, PMS and economics lecturer papers.
Exams that include Applied Microeconomics MCQs
Pakistan
- CSS
- PMS
- PPSC
- Lecturer tests
India
- UGC NET
- UPSC CSE
- State PSC exams
Bangladesh
- BCS
- Bangladesh Bank recruitment
- Bank job exams
Frequently asked questions
What is the difference between a horizontal and a vertical merger?
A horizontal merger joins firms at the same stage of production in the same industry, such as two car makers. A vertical merger joins firms at different stages of the same supply chain, such as a paper producer and a book publisher. A conglomerate merger joins firms in unrelated industries.
What is privatisation?
Privatisation is the transfer of ownership or control of a business or service from the public sector to the private sector. Governments may sell shares, auction state enterprises or contract out services. Supporters argue it improves efficiency, while critics worry about prices, jobs and access to essential services, especially where a private monopoly replaces a public one.
How many Applied Microeconomics MCQs are on MCQs360?
MCQs360 has 20 Applied Microeconomics MCQs in its Economics section. They are free to attempt without signing up, and each gives its answer instantly, helping you revise competition policy terms efficiently before a CSS or PMS paper.
Last reviewed October 2026