Economics · General Awareness

Economic Principles

1,087 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

Which of the following statements is/are incorrect? a. Profits can be taken as society’s approval to the utility of business. b. Profit maximisation indicates the efficient working of a business. c. There are hardly any sizeable business enterprises, whose only objective is profit maximisation.

  1. Only a

  2. Only b

  3. Only c

  4. All of the above

  5. None of the above
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

This is the correct answer. None of the statements are incorrect.

Multiple choice

Capital formation in an economy depends on the

  1. total income

  2. total demand

  3. total savings

  4. total production
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capital formation fundamentally relies on savings, as income must be saved rather than entirely consumed to create funds for investment in capital goods. Total savings provide the pool of resources necessary for economic expansion and capital accumulation.

Multiple choice

Who is the author of the book Das Capital?

  1. Bankim Chandra Chatterjee

  2. Karl Marx

  3. Mulk Raj Anand

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

Das Kapital is a foundational theoretical text in materialist philosophy, economics, and politics written by Karl Marx. It analyzes the capitalist system and its modes of production.

Multiple choice

The changes to occur in organization are due to

  1. technological factors.

  2. social and economic factor.

  3. operating problem.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Organizational change is a complex process driven by multiple factors, including technological advancements, shifting economic landscapes, social trends, and internal operational challenges.

Multiple choice

Light industries use

  1. light raw material

  2. materials which produce light

  3. light investment

  4. all of these

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

Light raw material is used in light industries. 

Multiple choice

The ideal location of a sugar mill is near the sugarcane producing areas because

  1. the government policies are favourable

  2. the basic raw material of is heavy, bulky, perishable

  3. of availability of transport

  4. establishment of industries is less expensive

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

The ideal location of a sugar mill is near the sugarcane producing areas because the basic raw material is heavy, bulky, perishable.