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 organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

Accelerated Industrial Growth through a MNC is an advantage to ______.

  1. home country

  2. host country

  3. both country

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

Host country a nation in which representatives or organizations of another state are present because of government invitation and/or international agreement. Dictionary of Military and Associated Terms.

Multiple choice civics rural livelihoods village of katik and kekti tanks and fisheries fishing in coastal regions

The non-farm works include blacksmiths, nurses, teachers, washermen, __________.

  1. Weavers

  2. Barbers

  3. Cycle repair mechanics

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Non-farm work is that type of work that does not include farming or agricultural activity. Non-Farm work includes repairs, constructions, mining, household manufacturing, pot and utensils making etc. Non-farm worker includes every person engaged in these activity i.e blacksmiths, nurses, teachers, washerman, barbers, weavers, cycle repair mechanics, labourers, maids, etc.

Multiple choice civics rural livelihoods village of katik and kekti tanks and fisheries fishing in coastal regions

People in rural areas earn their living in various ways. Some work on _____ while others earn their living on ______ activities.

  1. Farms

  2. Non-farm

  3. Both A and B

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

People in rual areas earns their living in various ways. Some work on farms and produce crops and earn their living by selling it while others do non-farm works that are not related to agriculture or farming. Non-farm works comprise mining, making pots and utensils, construction, repairs, etc.

Multiple choice commercial applications fundamental concepts of cost meaning, elements and classification of cost methods of costing cost accounting: an introduction

The work of factory employees that can be physically associated with converting raw material into finished goods is classified as ________________.

  1. Manufacturing overhead

  2. Indirect materials

  3. Indirect labour

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

Employees who are involved directly in to the production activity are direct labor. The cost of labor is directly associated to a specific unit or cost or product.

Multiple choice commercial applications fundamental concepts of cost meaning, elements and classification of cost methods of costing cost accounting: an introduction

The principle types of inventories are raw materials, ___________ and finished goods.

  1. Processed materials

  2. Goods-in-progress

  3. Stored goods

  4. Goods for dispatch
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Inventories may be classified as raw material, work in progress and finished goods. Goods which is partly finished is considered as goods in progress or work in progress. 

Multiple choice commercial applications fundamental concepts of cost meaning, elements and classification of cost methods of costing cost accounting: an introduction

An input of 5,000 kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4,300, the abnormal loss is __________ kg.

  1. 400

  2. 300

  3. 500

  4. 600
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In every production activity, a predetermined % is considered as normal loss. If the actual loss is more than the predetermined loss, difference is considered as abnormal loss. 


Input                                             5000 Kg

Actual output should be             4300 Kg
Total Loss during production        700 Kg
Normal Loss @8% on 5000 Kg     400 Kg
Abnormal Loss                               300 Kg

Multiple choice commercial applications fundamental concepts of cost meaning, elements and classification of cost methods of costing cost accounting: an introduction

Recorder quantity is ___________________.

  1. Quantity of material to be ordered

  2. Quantity level at which reorder is to be made

  3. Quantity which is to be ordered for second time

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

Inventory level of an item which signals the need for placement of a replenishment order, taking into account the consumption of the item during order lead time and the quantity required for the safety stock. 

Also called reorder level, reorder quantity, or replenishment order quantity.

Multiple choice commercial applications fundamental concepts of cost meaning, elements and classification of cost methods of costing cost accounting: an introduction

ABC Analysis is useful for analyzing the inventories based on __________.

  1. Their quality

  2. Their usage and value

  3. On physical volume

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

ABC analysis is a technique of inventory management. In this method, inventory is categorized in to A, B and C class depending on their importance. 

A category includes those inventory which are very important to the organization and consist of 70-80% of inventory value but only 10-20 % of the quantity. 
B category includes those inventory which are of moderate importance to the organization and consist of 20-30% of inventory value but only 20-30 % of the quantity. 
C category includes those inventory which are of lesser importance to the organization and consist of only 10-20% of inventory value but records 70-80 % of the quantity. 

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

The Multinational corporation ____________.

  1. Always do the marketing of the primary goods.

  2. Always produced manufactured goods.

  3. Always do the marketing of the manufactured goods.

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

A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they coordinate global management.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

How is an MNC defined?

  1. A MNC is a company that owns or controls production in more than one district in a country

  2. A MNC is a company that owns or controls production in more than one state in a country

  3. A MNC is a company that owns or controls production in more than one nation

  4. All of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A multinational corporation or worldwide enterprise is a corporate organization that owns or controls production of goods or services in at least one country other than its home country.


A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. 

A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management.

Multiple choice organization of commerce and management employment opportunities in commerce outsourcing employment opportunities in insurance sector and capital market emerging service business in india

The need for outsourcing arises because __________.

  1. ensuring smooth operations

  2. decreasing past losses

  3. to take tax advantage

  4. all of above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The need for outsourcing arises for ensuring the smooth operations of business organisations by focusing on its core activities, getting its business processes work done from the skilled professionals that increases efficiency eventually generating more profits.

Multiple choice organization of commerce and management employment opportunities in commerce outsourcing employment opportunities in insurance sector and capital market emerging service business in india

Outsourcing is used by an organization for the interest of ____________.

  1. redirecting or conserving energy directed at the competencies of a particular business

  2. making more efficient use of worldwide labor, capital, technology and resources

  3. lowering firm costs or to make more efficient use of worldwide labor, capital, technology and resources

  4. any of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Companies outsource primarily to cut costs i.e. for achieving he economies of scale and also about reaping the benefits of strategic outsourcing such as skilled expertise, specialized performance so that better results can be obtained, eventually generating more profits.

Multiple choice organization of commerce and management employment opportunities in commerce outsourcing employment opportunities in insurance sector and capital market emerging service business in india

Near shore outsourcing is _______.

  1. contracts done by company with other companies within a company's own country

  2. contracts done by a company with neighbouring countries companies

  3. contracts with companies excluding neighbouring countries

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

Near shore outsourcing is the process of getting contracts done from the neighboring countries rather than getting it done from their own country for example; many countries of USA outsource its work to Canada.

Multiple choice organization of commerce and management employment opportunities in commerce outsourcing employment opportunities in insurance sector and capital market emerging service business in india

The need for outsourcing arises because _________.

  1. achieving economy

  2. getting better results

  3. specialized performance

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Companies outsource primarily to cut costs i.e. for achieving he economies of scale and also about reaping the benefits of strategic outsourcing such as skilled expertise, specialized performance so that better results can be obtained, eventually generating more profits.

Multiple choice organization of commerce and management employment opportunities in commerce outsourcing employment opportunities in insurance sector and capital market emerging service business in india

Need for outsourcing arises due to _______.

  1. getting no result in home country

  2. lack of labour in home country

  3. specialized performance

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Companies outsource primarily to cut costs i.e. for achieving he economies of scale and also about reaping the benefits of strategic outsourcing such as skilled expertise, specialized performance so that better results can be obtained, eventually generating more profits.