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

What is the central point made out in the passage?

Directions: The short passage below is followed by a question based on its content. Answer the question on the basis of what is stated or implied in the passage.

Many of you have long experienced in your manufacturing operations the advantages of substantial, well-contrived, and well-executed machinery.
Experience has also shown you the difference of the results between mechanism which is    neat, clean, well arranged, and always in a high state of repair; and that which is allowed to be dirty, in disorder, and without the means of preventing unnecessary friction, and which therefore becomes, and works, much out of repair. In the first case the whole economy and management are good, every operation proceeds with ease, order, and success.
In the last, the reverse must follow, and dissatisfaction among all the agents and instruments interested or occupied in the general process, which cannot fail to create great loss.
If, then, due care as to the state of your inanimate machines can produce such beneficial results, what may not be expected if you devote equal attention to your vital machines, which are far more wonderfully constructed?
When you shall acquire a right knowledge of these, of their curious mechanism, of their self-adjusting powers; when the proper mainspring shall be applied to their various movements— you will become conscious of their real value, and you will readily be induced to turn your thoughts more frequently from your inanimate to your living machines; and you will discover that the latter may be easily trained and directed to procure a large increase of pecuniary gain, while you may also derive from them a high and substantial satisfaction.

  1. Co-ordination among different organs in our body and hygienic diet is the secret of a healthy being.

  2. Good and effective management is important for successful operating mechanisms within an organisation.

  3. Harmonization and order among individuals of the society would create a better society.

  4. Well-contrived and well preserved machinery results in ordered and satisfied mechanism whereas unnecessary friction in machinery causes disorder among all the agents in the mechanism.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

By living machines, the author means individuals or human beings that are a part of the society. “The latter may be easily trained” provides the clue that the author emphasizes on the individuals as they can be easily trained. Hence, (3) is the answer.

Multiple choice

Dr. Marshall pointed out the significance of _____ prior to wealth.

  1. technology

  2. man

  3. alternative uses

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

The welfare of man and his study is more important in definition of Dr. Marshall as compared to wealth. Robbins pointed out economics as study of making choice between alternate uses. Prof. Samuelson considered economic growth more significant.

Multiple choice

Directions: Select the option that fills in the blanks most suitably (in the same order).

Having ________ economic significance, sericulture has become an employment ________ for the poor and the weaker sections of society including widows.

  1. immense, contingency

  2. extensive, consistency

  3. appreciable, fountainhead

  4. enormous, capacity

  5. tremendous, potential
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

From the context of sentence, it can be inferred that second blank should have positive flow. The word ‘potential’ is the best fit in context of generating employment. 

Multiple choice

In order to produce something, the required resources need to be available and planned. Which of the following is not a type of resource?

  1. Equipment

  2. Personal

  3. Time

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

In project management and production planning, resources typically refer to tangible assets like equipment, materials, and human resources (personnel). Time is considered a constraint or a dimension of the schedule rather than a resource that can be consumed or stocked in the same manner.

Multiple choice

Consider the following sentences regarding Dairy Farm management. I. The quantity of breeds in the farm primarily determines the milk yield. II. It deals with processes and systems that increase yield and improve quality of milk. III. The quality and quantity of milk produce is dependent upon the quantity of food, the cattle consumes. Which of the above statements is/are incorrect?

  1. Only I

  2. Only II

  3. Only III

  4. Both I and II

  5. Both I and III
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Correct statements:I. Milk yield is primarily dependent on the quality of breeds in the farm.II. It deals with processes and systems that increase yield and improve quality of milk.III. The quality and quantity of milk produce is dependent upon the quality of food, the cattle consumes.