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 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 company with neighbouring countries companies

  3. contract with companies excluding neighboring countries.

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

Nearshore outsourcing is the one in which a company get its work outsourced from the companies of nation's neighboring countries. For example: any Indian company say, Tata getting one of its work outsourced from Nepal.

Multiple choice book keeping and accountancy reserve and fund meaning and characteristics of reserves reserves provisions and reserves

Creation of reserves ______ the amount of profits available for distribution among the owners of the business.

  1. Neutralize

  2. Increase

  3. Reduces

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

Reduces.

Reserves are the amounts set aside out of profits. It is an appropriation of profits or accumulated profits to strengthen the financial position of the business. Reserves are not set aside to meet a liability or depreciation in the value of assets but is set aside to meet known or unknown contingency that may arise in future. For e.g., General Reserve, Reserve for Expansion etc.
it is created as a matter of prudence out of profits and hence creation of reserves reduces the amount of profits available for distribution among the owners of the business.

Multiple choice accountancy statement of changes in financial position preparation of cash flow statement cash flow statement finance

AS-2 is not applicable in case of ___________.

  1. plantation products

  2. work-in-progress

  3. raw material

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

Accounting Standard 2 (AS-2) deals with the valuation of inventories. It explicitly states that it does not apply to inventories of producers relating to livestock, agricultural and forest products, and mineral oils, ores, and gases.

Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

The term royalty is closely associated with ________________.

  1. licensing

  2. direct exporting

  3. contract manufacturing

  4. piggybacking
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
  • Licensing is the process of permitting another party in a foreign country to produce and sell goods under your trademarks, patents or copy rights in lieu of some fee is another way of entering into international business. Licensing is a contractual arrangement which comes with a fee called royalty.
  • It is under the licensing system that Pepsi and Coca Cola are produced and sold all over the world by local bottlers in foreign countries. 
Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

Presently Industrial Licensing is not applicable for ___________.

  1. Ship Building

  2. Hazardous Chemicals

  3. Cigarettes

  4. Electronic Aerospace and Defence Equipment
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

It normally takes place in a specialized facility known as a shipyard. Ship builders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.

Multiple choice maths direct proportion and inverse proportion rule of three types of proportions direct proportion

Which is an example of direct proportion?

  1. More working hours, more earning

  2. More speed of car, less time taken

  3. More no. of workers, less time taken

  4. Less the age of person, more active he is
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

2 quantities say it be $x , y$ are said to be in proportion when the change in value of $x$ , leads to the equal change in value of $y$.

If $x$ increases, $y$ increases proportionally, it is called Direct proportion
i.e if a person works more time, he will earn more which is option A.
in other option, are the examples of inverse proportion
so the answer is Option A 

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

_______ refers to the importance of a commodity due to its usefulness whereas _______ refers to the capacity of a commodity to command or obtain other goods in exchange.

  1. Value in use, value in exchange

  2. Value in exchange, value in use

  3. Price, value in exchange

  4. Price, value
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Power of commodity which can command to exchange itself with the other good is called the Value of product. It refers to the importance of a commodity due to its usefulness. Usually a product is valued by the money. Capacity of a commodity to command or obtain other goods in exchange is called value of exchange.

Multiple choice physics friction advantages and disadvantages of friction merits and demerits of friction and methods to reduce it friction: a necessary evil

The efficiency of machine is reduced due to friction.

  1. True

  2. False

  3. Ambiguous

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

Friction is the force that resists motion when the surface of one object comes into contact with the surface of another. In a machine, friction reduces the mechanical advantage , or the ratio of output to input an automobile, for instance , uses one-quarter of its energy on reducing friction. Hence the efficiency of machine is reduced due to friction.

Multiple choice commercial applications sales and selling process distinction between marketing and sales meaning, elements and factors influencing marketing mix evolution of marketing

Product policy leads to.

  1. Product objective

  2. Productive strategies

  3. Maximisation profit

  4. Both (A) and (B)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Product policy provides the strategic direction for product development and management, which helps in defining clear objectives and establishing the strategies needed to achieve them.

Multiple choice commercial applications sales and selling process distinction between marketing and sales meaning, elements and factors influencing marketing mix evolution of marketing

Product line contraction is also termed as_________.

  1. Modification

  2. Simplification

  3. Diversification

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

In marketing terminology, product line contraction or the reduction of the product mix is often referred to as simplification, as it streamlines the company's offerings.