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

The Factors of PLC includes�

  1. Product Regulatory System

  2. Risk

  3. Competiton level

  4. Legal Protection

  5. All of these
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

The factors influencing the product life cycle are numerous and include regulatory systems, risk assessment, competitive intensity, and legal protections.

Multiple choice

The movement of goods from one region to another does not help in

  1. large scale production

  2. employment generation

  3. creation of utilities

  4. determining unit value
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

It is the right answer because it does not help in determining unit value or price per unit. It is the total cost of production that helps in determining or fixing per unit value. For example, if the total cost of production is Rs. 1 lakh and number of units produced is 10,000, then the value per unit would be Rs. 10.

Multiple choice

Economic environment includes ____

  1. development of Human Resources

  2. labour Policy

  3. economic Policy

  4. all of these

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

The economic environment includes factors like labor policy, economic policy, and human resource development, all of which impact the financial landscape.

Multiple choice

Technological environment consists____

  1. Status of Technology

  2. Option relating to Technology

  3. Cost of Technology

  4. All of these

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The technological environment includes the status, availability, and cost of technology, as these factors dictate how a bank operates and innovates.

Multiple choice

Match the following:

 
List–I (Economic Environment’s Factors) List–II (Examples)
1. Economic System (a) Mixed Economy
2. Economic Cycle (b) Prosperity
3. Structure of Economy (c) Capital Formation
4. Tax Structure (d) Income Tax
(e) Planning

  1. 1 - (a) 2 - (b) 3 - (c) 4 - (d)

  2. 1 - (a) 2 - (d) 3 - (b) 4 - (c)

  3. 1 - (c) 2 - (a) 3 - (b) 4 - (d)

  4. 1 - (c) 2 - (d) 3 - (b) 4 - (a)

  5. 1 - (d) 2 - (b) 3 - (c) 4 - (a)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Economic systems include models like mixed economies; economic cycles involve phases like prosperity; the structure of an economy relates to capital formation; and tax structures include specific levies like income tax. Option A correctly maps these relationships.

Multiple choice

_________ in an economy depends on total production.

  1. Capital formation

  2. Capital

  3. GDP

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

Capital formation refers to the net addition of capital stock, such as equipment, buildings, and other productive assets, which is driven by the level of production and investment in an economy.

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

American productivity is declining in relation to Europe's; the energy expended per unit of production in the United States is as much as twice that expended in West Germany.

  1. as much as twice that expended in West Germany

  2. as much as twice that of West Germany's expenditure

  3. up to two times of West Germany's expenditure

  4. up to two times what West Germans expended

  5. up to double the West German expenditure
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The underlined part is perfectly fine.Case of comparative. 'As much as' is the correct usage for comparing.

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.