Hard Macro/Micro MCQs

• What is the key principle of the Supply and Demand theory in microeconomics?

  Price changes based on supply and demand
• What does the Consumer Choice theory explain in microeconomics?

  How people spend their money
• In a perfectly competitive market, there is only one firm.

  False
• Match the market structure with its example:

  Perfect Competition ↔️ Farmers selling vegetables

  Monopoly ↔️ A single water provider

  Oligopoly ↔️ A few companies selling smartphones
• What does GDP measure in macroeconomics?

  Total value of goods and services
• High unemployment indicates that many people are actively employed.

  False
• What happens to a country's GDP when its citizens buy more goods and services?

  GDP increases
• Order the market structures from most competitive to least competitive:

  1️⃣ Perfect Competition

  2️⃣ Oligopoly

  3️⃣ Monopoly
• What is the definition of inflation in macroeconomics?

  Sustained increase in prices