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 commercial applications verbal and non-verbal communication non-verbal communication non-verbal communication and interpersonal skills spoken (oral) and written communication

__________ plays a vital role in keeping the production line going by ensuring timely procurement.

  1. Sales correspondence

  2. Purchase correspondence

  3. Human resources correspondence

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

Purchase Correspondence is the act of writing letters to someone.Someone's correspondence is the letters that they receive or send.

Multiple choice botany biotechnology and its applications biopiracy biotechnological regulations principles and process of biotechnology

Use of bio-resources by multinational companies and other organisations without proper authorisation from the countries and concerned without compensatory payment is termed as 

  1. Resource partitioning

  2. Biopiracy

  3. Patenting

  4. Biofortification
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Biopiracy is exploitation of bioresources of a company by organisations and multinationals for commercial purpose with or without patent but without any Access and Benefit Sharing Agreement (ABA). Bioresources or biological resources are all those organisms which can provide commercial benefits. They are abundant in developing countries have traditional knowledge related in bioresources. On the other hand, developed countries are poor in bioresources but are rich in technology. Traditional knowledge helps in saving time, effort and expenditure in developing refined product for commercialisation. Therefore, based on traditional knowledge, institutions and companies of industrialised nations are collecting and exploiting bioresources of other nations by getting them patented. 
So, the correct answer is 'Biopiracy'.
Multiple choice evs - i our home and environment environmental issues due to construction of houses introduction to natural resources (eco) materials (resources ) and its classification

Resources which are surveyed and their quality and quantity have been determined for utilization are called _________.

  1. Potential resources

  2. Developed resources

  3. Natural resources

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

Developed resources: Resources that surveyed for utilisation and are being used currently are called developed resources. Example: Petroleum in Mumbai High

Multiple choice evs - i our home and environment environmental issues due to construction of houses introduction to natural resources (eco) materials (resources ) and its classification

The ____________ rule provides an important result about the sustainability of welfare in an economy that uses non-renewable source.

  1. hartwick's

  2. hotelling's

  3. hermann scheer

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

In resource economics, Hartwick's rule defines the amount of investment in produced capital (buildings, roads, knowledge stocks, etc.) that is needed to exactly offset declining stocks of non-renewable resources.

Multiple choice organisation of commerce and management channels of distribution elements of marketing mix middlemen physical distribution and channels

The primary function of a distribution channel is to bridge the gap between production and consumption.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Distribution channels exist to move products from the point of production to the point of consumption, effectively bridging the spatial and temporal gap between producers and users.

Multiple choice organisation of commerce and management channels of distribution elements of marketing mix middlemen physical distribution and channels

'Intensive distribution method' is referred to ______.

  1. minimum expansion

  2. maximum expansion

  3. minimum contraction

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

Intensive distribution is a marketing strategy that aims to provide saturation coverage of the market by using all available outlets. This maximizes the expansion of the product's reach.

Multiple choice civics our life in society man's lifestyle in a society tracing changes through a thousand years medieval india: society, resources and trade buildings, paintings and books

How variety of articles are produced?

  1. Labour

  2. Skills of people

  3. Both A and B

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Food, clothes, shelter, education and health are our basic needs. Due to the labour and skills of people in the society, a variety of articles are produced.
Multiple choice physics sources of energy biomass and biogas biogas conventional sources of energy

The output of a given windmill

  1. increases with an increase in wind velocity.

  2. decreases with an increase in wind velocity.

  3. is independent of wind velocity.

  4. cannot be determined
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Windmills convert the kinetic energy of wind into mechanical or electrical energy. Since kinetic energy is proportional to the square of velocity, the output increases as wind velocity increases.

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

A complete cycle consists of a period of:

  1. Prosperity and depression

  2. Prosperity and recovery

  3. Prosperity and recession

  4. Recession and recovery
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$\Rightarrow$  A complete cycle consist of period of : $Prosperity\, and\, recession$.

$\Rightarrow$  $Prosperity\,phase$ : When there is an expansion of output, income, employment, prices and profits, there is also a rise in the standard of living. This period is termed as Prosperity phase.
$\Rightarrow$  $Recession Phase$ : The turning point from prosperity to depression is termed as Recession Phase.
During a recession period, the economic activities slow down. When demand starts falling, the overproduction and future investment plans are also given up. There is a steady decline in the output, income, employment, prices and profits. 

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

The fire in a factory is an example of

  1. Secular trend

  2. Seasonal movements

  3. Cyclical variations

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

$\Rightarrow$  The fire in factory is an example of $Irregular\, variations.$

$\Rightarrow$  Irregular variations which occur on account of random external events.
$\Rightarrow$ These variations either go very deep downward or too high upward to attain peaks abruptly.
$\Rightarrow$  They do not have any definite pattern and it cannot be predicted in advance. These variations are due to floods, wars, famines, earthquakes, strikes, lockouts, epidemics etc.

Multiple choice business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

The wholesalers facilitate ____ of production activity throughout the year by purchasing the goods as and when these are produced.

  1. continuity

  2. risk bearing

  3. storage

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

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.

Multiple choice business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

The wholesalers normally make forward dealing with the supply goods with the producer. This relieves the manufacturers from ______.

  1. plan and regulate their production

  2. keeping the stocks

  3. interim loans

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The stock of a corporation is all of the shares into which ownership of the corporation is divided. In American English, the shares are commonly called stocks. A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares.

Multiple choice geography trade in agricultural produce (part - a) trade in tamil nadu trade in agricultural produce - i human geography in tamil nadu

Differences in climate, geology, _____ result in the exchange of goods.

  1. Soil, vegetation and mineral resources

  2. Minerals, power minerals and transport

  3. Atomic power, hydro-electric power and solar energy

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

The exchange of goods between regions is primarily driven by differences in natural endowments, including climate, geology, soil types, vegetation, and the availability of mineral resources.

Multiple choice economics the state of the indian economy on the eve of independence agricultural market system policy of agriculture, industry and foreign trade under british rule rural development

Agriculture has _______ Capital - Output Ratio.

  1. low

  2. high

  3. moderate

  4. nothing can be said
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Agriculture generally has a low capital-output ratio compared to heavy industries, meaning it requires less capital investment to produce a unit of output.

Multiple choice economics the state of the indian economy on the eve of independence agricultural market system policy of agriculture, industry and foreign trade under british rule rural development

There will be a __________ demand for industrial and consumer goods in rural areas, in case of prosperity in agriculture. 

  1. low

  2. moderate

  3. high

  4. can't be determined
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Agricultural prosperity increases the disposable income of rural households, which leads to higher demand for industrial and consumer goods in those areas.