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 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 commercial applications advertising and brand promotion definition and merits of brand and branding branding and packaging marketing mix concept,types, objectives, advantages and criticism of advertising distinction between advertising and personal selling meaning, objectives, merits and demerits of advertising

Product is something made in a factory; a ________ is something bought by the customer.

  1. product

  2. brand

  3. branding

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

While a product is a physical item manufactured in a factory, a brand is the psychological and emotional value that the customer perceives and chooses to buy.

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.

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

_______ enhances the social well being of citizens by exposing them to variety of quality products including luxury items.

  1. Warehousing

  2. Transportation

  3. Trade

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

Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. 

A system or network that allows trade is called a market. An early form of trade, barter, saw the direct exchange of goods and services for other goods and services.

Multiple choice geography pollution - preventive measures human activities and environmental degradation human activities and its impact on environment pollution, sources, effects and preventive measures

The amount of Industrial waste increase due to establishment of different ____.

  1. industries.

  2. fields

  3. sector

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

With increase in the industries the pollution is also increasing to a great extend. More the industries , more is the smoke with dust particles is released in air and water and more is the pollution. Also global warming increases as the trees are cut down for the industrial place to develop.