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

Ship manufacturing industry is responsible for ____________.

  1. chemical waste

  2. e-waste

  3. electronic waste

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

Ship manufacturing and breaking industries involve heavy metals, paints, and solvents, which are primary sources of chemical waste.

Multiple choice world bank institutes supporting business facilitators of international business organisation of commerce and management commerce nabard and kvic funding and assistance to small businesses

In the initial stages of development, __________ imports will be high.

  1. capital and technological

  2. maintenance

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In the early stages of industrial development, a country typically lacks the domestic capacity to produce machinery and advanced technology, necessitating high imports of capital goods.

Multiple choice commercial applications financial accounting and reporting balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations accounting procedure for not-for-profit organisations prepration of income and expenditure account and balance sheet income and expenditure account prepration of income and expenditure account accounting treatment for npo's

The capital of a non-profit organization is generally known as __________.

  1. Equity

  2. Accumulated fund/Capital fund

  3. Cash fund

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

The capital for a non-profit organisation is not funded by the owner and thus has to be mentioned as capital fund. This is because capital fund is that account which records all those transactions which are related to capital nature.

Multiple choice elements of book keeping and accountancy accounting from incomplete records ascertaining profit or loss from incomplete records meaning and preparation of statement of profit meaning of incomplete records, reasons for incompleteness and its limitations preparation of final accounts from incomplete records preparation of statement of affairs introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

Profit = Capital at the end+______- Capital introduced - Capital in the beginning.

  1. Sales

  2. Drawings

  3. Loan

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

Profit is calculated by the taking into account the fluctuations of the capital at the beginning and at the end of the year, by adding the drawings, and deducting the capital introduced to the capital at the end of the year.  

Multiple choice commercial applications marketing mix - 4 p's meaning of product product mix ideologies/concepts/views of marketing management

Working capital is that___________________.

  1. Proportion of a company's capital which is employed in short term operations

  2. Proportion of a company's capital which is employed in long term operations

  3. The amount employed in fixed assets

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

Working capital represents the capital used for day-to-day operations and short-term obligations, calculated as current assets minus current liabilities.

Multiple choice commerce sources of business finance - 2 commercial paper non-institutional sources - short-term short term sources of finance

Commercial papers provide _______ funds as compared to other sources.

  1. less

  2. more

  3. medium

  4. equal
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
The size of money that can be raised through commercial paper is limited to the excess liquidity available with the suppliers of funds at a particular time. Commercial paper provides more funds as compared to other sources. 
Multiple choice commerce sources of business finance - 2 commercial paper non-institutional sources - short-term short term sources of finance

The amount raised by commercial paper is generally very _______.

  1. large

  2. small

  3. equal

  4. both (a) and (b)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Commercial paper is an unsecured promissory note issued by a firm to raise funds for a short period, varying from 90 days to 364 days. It is issued by one firm to another business firm. The amount raised by commercial papers is very large as the debt is totally unsecured.
Multiple choice business organisation and correspondence classification of busniess activities concept and types of commerce and industry nature of industries and commerce operative activities in business business as an activity meaning and types of trade trade and aids to trade

Activities involved in physical involvement of goods from the factory to market etc. is called _____________.

  1. logistics

  2. Merger

  3. Mission

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

Logistics is the management of the flow of goods between the point of origin and the point of consumption to meet requirements of customers or corporations.

Multiple choice history the industrial age and change of life of people the britain 1750-1945 industrial revolution and social change the industrial revolution and social change (1750-1900 ce)

Richard Arkwright was a businessman who saw an opportunity to make money in the __________.

  1. chemical industry

  2. agricultural industry

  3. railway industry

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

Richard Arkwright was a textile entrepreneur who revolutionized the industry through the invention of the water frame and the establishment of the factory system for cotton spinning.

Multiple choice business organisation and correspondence commerce and modern civilization history of commerce in india hindrances of commerce historical background of commerce in the sub-continent

Hindrance of _____ refers to the problem of distribution of goods at distant places without loss.

  1. skill

  2. person

  3. time

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

The hindrance of place refers to the geographical gap between the location of production and the location of consumption. Transporting goods helps overcome this hindrance.

Multiple choice business organisation and correspondence commerce and modern civilization history of commerce in india hindrances of commerce historical background of commerce in the sub-continent

______ eliminates the barriers of persons for the smooth flow of goods from producer to consumer.

  1. Advertising

  2. Warehousing

  3. Trade

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

Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties.

HMRC considers that your company or organisation has not yet become active or started trading if it has not yet engaged in any business activity (business activity means carrying on a trade or profession, or buying and selling goods or services with a view to making a profit or surplus).

Multiple choice commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

As profits increase, more and more non-monetary benefits are expected by which of the following stakeholders?

  1. Government

  2. Creditors

  3. Debtors

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

Stakeholders refer to any individual or organization whose interest or concern lies with the business.As profits increase, more and more non-monetary benefits are expected by employees. Employees refer to persons who work for the business organization.