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

The word kanban is most appropriately associated with

  1. economic order quantity

  2. just-in-time production

  3. capacity planning

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

Kanban Literally, a "Visual record"; a method of controlling materials flow through a Just-in-time manufacturing system by using cards to authorize a work station to transfer or produce materials

Multiple choice

In an MRP system, component demand is

  1. forecasted

  2. established by the master production schedule

  3. calculated by the MRP system from the master production schedule

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

Multiple choice business organisation management - process or functions, managerial role and levels levels of management management - process and levels functions and levels of management

Which input has the greatest potential to increase productivity?

  1. Labour

  2. Globalization

  3. Management

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

Management is considered the most critical input for productivity because it coordinates labor, capital, and technology to achieve organizational goals.

Multiple choice commerce sources of business finance - 2 lease financing non-institutional sources - medium-term long term sources of finance public deposits

The risk of obsolescence is borne by the _________.

  1. Lessor

  2. Lessee

  3. Both a and b

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
A lease is a contractual agreement where by one party i.e., the owner of an asset grants the other party the right to use the asset in return for a periodic payment. 
The owner of the assets is called the‘lessor’ while the party that uses the assets is known as the ‘lessee’. The risk of obsolescence is borne by the lesser.
Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Key factor is also known as ___________.

  1. Limiting factor

  2. Governing factor

  3. Principal factor

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

A key factor is defined as the factor in the activities of an undertaking which, at a particular point of time or over a period, will limit the volume of output. Other variant terms are limiting factor, Principal Budget Factor & scarce factor. Limiting factors are governed by both internal & external factors. It may be actual or potential. If a factor of production is in short supply, then the best-paying product becomes that which yields the highest contribution per unit of limiting factor.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Usually the production budget is stated in terms of ___________.

  1. Money

  2. Quantity

  3. Both of these

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

A business may need to revise a budget continuously for the length of time it takes to complete a short-term project. If a business undertakes an expansion that requires three years to complete, it may need recurrent budget revisions during this time to meet short-term goals. Afterwards, the company may go back to a more fixed budget with long-term goals. In addition, a company that introduces a new product may need to continually revise the budget until actual figures for production costs and sales income is substantiated.

Multiple choice business organisation and correspondence bank 2 - accounts maintained by a bank functions and services of banks role of banks in economic development and modes of money transfer accounts and other services

MIS normally found in a manufacturing organization will not be suitable in the ______.

  1. Service sector

  2. Banking sector

  3. Agriculture sector

  4. Transportation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

MIS normally found in a manufacturing organization will not be suitable in the service sector. MIS is normally found in manufacturing sector. A Management Information System can be defined as an information based system which is used for the decision -making purpose and for maintaining coordination in an organization. It helps to visualize the information of the organization.

Multiple choice business organisation and correspondence classification of busniess activities business as an activity meaning and types of trade trade and aids to trade

___________ creates time utility by supplying the goods at the right time to the consumer.

  1. Transportation

  2. Communication

  3. Insurance

  4. Warehousing
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Warehousing creates time utility by storing goods produced in advance and making them available to consumers exactly when they are needed.

Multiple choice elements of business classification of busniess activities business as an activity meaning and types of trade trade and aids to trade

Among the aids to trade, _________ widens the market.

  1. Warehousing

  2. Insurance

  3. Banking

  4. Transport
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Transportation is a major contributor to the economy and a competitive force in business.It is the activity that physically connects the business to its supply chain partners, such as suppliers and customers, and is a major influence on the customer's satisfaction with the company.