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

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. 

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

The product structure of an assembly P is shown in the figure. Estimated demand for end product P is as follows

           
Week
1
2
3
4
5
6
Demand
1000
1000
1000
1000
1200
1200

Ignore lead times for assembly and sub-assembly. Production capacity (per week) for component R is the bottleneck operation. Starting with zero inventory, the smallest capacity that will ensure a feasible production plan up to week 6 is

  1. 1000

  2. 1200

  3. 2200

  4. 2400
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$\text{Hence, the smallest capacity that will ensure a feasible production plan up to week 6 is 2200}$

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

What did the War Industry Board create

  1. coordinated all facets of industrial and agricultural produc

  2. coordinated all facets of fish and agricultural production

  3. coordinated all facets of industrial and fish production
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The War Industries Board was established during World War I to coordinate the purchase of war supplies and encourage mass production to increase efficiency.