Economics · General Awareness

Economic Principles

1,097 Questions

Economic principles form the foundation of how societies allocate resources and produce goods. This topic covers factors of production, types of capital, and demand classifications. It is a vital component of the economics syllabus in many civil services and banking exams.

Factors of productionCapital typesDemand classificationsEconomic activities

Economic Principles Questions

Multiple choice

Jotun Group which is a Norwegian company manufacturing

  1. paint materials

  2. valves and pipes

  3. automobiles

  4. parts of ships
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Jotun Group is a leading Norwegian multinational chemicals company primarily known for its decorative paints and performance coatings (marine, protective, and powder coatings). It is one of the world's largest manufacturers of paint materials.

Multiple choice

(A)Oil has and (B)still is (C)in great demand. (D)No error

  1. (A)

  2. (B)

  3. (C)

  4. (D)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When two auxiliary verbs are used with a single principal verb, both must be correctly formed. 'Has' requires 'been' (past participle) to form the perfect tense, while 'is' works with 'in great demand.'

Multiple choice

A multitude of tax incentives has led to a boom in manufacturing in the state; so abundant has capital been for new manufacturing ventures that investors regularly scour the state for sites at which to build new facilities.

  1. so abundant has capital been for new manufacturing ventures that

  2. capital has been so abundant for new manufacturing ventures, so that

  3. the abundance of capital for new manufacturing ventures has been such,

  4. such has the abundance of capital been for new manufacturing ventures that

  5. such has been an abundance of capital for new manufacturing ventures,
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Options (3), (4) & (5) are incorrect as they do not follow correct idiom – ‘so...that’ or ‘such...that’. Between options (1) & (5) – ‘so...that’ is used for measure of something and goes with an adjective while ‘such...that’ is used for nature of something and is followed by an abstract noun. Hence (1).

Multiple choice

Research organisations do not usually think of their patents as capital or reckon the interest income that would be generated if a portion of the capital would have been invested in some other form.

  1. be generated if a portion of the capital would have been

  2. have been generated if a portion of the capital would have been

  3. be generated if a portion of the capital were

  4. be generated if a portion of the capital was

  5. be generated if a portion of the capital had been
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The sentence expresses a hypothetical situation or a wish best expressed in subjunctive mood using 'were'. Hence (3).

Multiple choice

Because the competitor’s new method is the fastest and it is therefore the most efficient system, it is being increasingly viewed by the production team as a threat to market share.

  1. and it is therefore the most efficient system, it is being increasingly viewed

  2. it is therefore the most efficient of systems, and it has increased the view

  3. and therefore the most efficient system, it is being increasingly viewed

  4. and therefore it is the most efficient of systems, there is an increasing view

  5. therefore being the most efficient of systems, it is increasingly viewed
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Options (1), (2) and (4) are incorrect because of the redundant ‘it is’. Option (5) disobeys parallelism by introducing ‘being’ after ‘therefore’. Hence (3).

Multiple choice

MSME -

  1. Micro, Small and Medium enterprises

  2. Micro Savings Machine Enterprises

  3. Marginal Small and Micro enterprises

  4. Marginal Small and Medium Enterprises
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

MSME stands for Micro, Small and Medium Enterprises, a classification used to define the scale of businesses.

Multiple choice

The last stage of PLC is

  1. maturity

  2. decline

  3. introduction

  4. growth
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Product Life Cycle (PLC) consists of four stages: introduction, growth, maturity, and decline. Decline is the final stage.

Multiple choice

Every new technology:

  1. has no effect on the pace of development

  2. retards the pace of development

  3. accelerates the pace of development

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

New technologies generally build upon existing knowledge, leading to more efficient processes and tools, which in turn accelerate the overall pace of development.

Multiple choice

Development of technology has made the man free from

  1. money

  2. food

  3. labour

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Technological advancements, such as automation and machinery, are designed to perform tasks that were previously done manually, thereby reducing the amount of human physical labor required.

Multiple choice

Fast development of technology took place due to

  1. need

  2. work

  3. energy crisis

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The phrase necessity is the mother of invention highlights that technological development is primarily driven by the need to solve problems or satisfy human requirements.

Multiple choice

In the development of technology:

  1. energy has no role to play

  2. energy is needed

  3. energy is not needed

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

All technological processes require energy to function, whether it is human, animal, mechanical, or electrical energy.

Multiple choice

Although some officials noted that using machines for farming in China costs more than traditional hand cultivation, the mechanization of farming in the village of Long Bow doubled the corn yield while the previous year's costs were cut in half.

  1. mechanization of farming in the village of Long Bow doubled the corn yield while the previous year's costs were cut in half

  2. mechanization of farming in the village of Long Bow doubled the corn yield while cutting costs to half those of the previous year

  3. mechanization of farming in the village of Long Bow doubled the corn yield as cost were cut to half of the previous year's

  4. farming mechanization in the village of Long Bow doubled the corn yield as it cut in half the previous year's costs
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option B is the most concise and grammatically sound. It correctly uses 'while cutting costs' to describe the action of the mechanization.