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 economics laws of returns - returns to a factor and returns to scale total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function

You are given the following data:

Factor Output
0 0
1 15
2 35
3 60
4 92
5 140

The above data is an example of:

  1. Decreasing returns to scale.

  2. Constant returns to scale.

  3. Increasing returns to scale.

  4. Positive fixed costs.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Calculating marginal product: 15, 20, 25, 32, 48. Since the marginal product is increasing, this indicates increasing returns to scale.

Multiple choice economics laws of returns - returns to a factor and returns to scale total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function

If as a result of a 50% increase in all inputs, the output rises by 75%, this is a case of:

  1. Increasing Returns to a Factor

  2. Increasing Returns to Scale

  3. Constant Returns to a Factor

  4. Constant Returns to Scale
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If output increases by 75% while inputs only increase by 50%, the output growth is greater than the input growth, which defines increasing returns to scale.

Multiple choice economics laws of returns - returns to a factor and returns to scale total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function

In the very beginning of production generally, the Increasing Returns to scale is found because-

  1. Input is increased

  2. Plant and Machinery will be new

  3. Production Problems are less

  4. Economies of Scale
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Increasing returns to scale in the early stages of production are primarily driven by economies of scale, such as specialization and better utilization of indivisible factors.

Multiple choice economics comparative studies of indian and chinese economies comparing indian and chinese economies comparative development experiences of india and its neighbours economics of development

____________ enterprises account for about half of China's exports today.

  1. Public

  2. Private

  3. Foreign-invested

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

Foreign-invested enterprises (FIEs) have historically played a massive role in China's export-oriented growth strategy. They account for a very large share of total export value.

Multiple choice organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

At present only __________ industries are reserved for the public sector.

  1. $5$
  2. $7$
  3. $8$
  4. $2$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Intially in 1991 there were 8 industries under public sector but now there are only 2 industry i.e atomic energy and railways.

Multiple choice commercial studies selection of an accounting software package erp practical application of accounting software accounting information system

The size of organisation and the volume of business transactions ________ the software choices.

  1. do not affect

  2. do affect

  3. do or do not affect

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

The size of the organisation and the volume of business transactions do affect the software choices. Small organisations, e.g. in non-profit organisations, where the number of accounting transactions is not so large, many opt for simple, single user operated software.

Multiple choice biology animals in daily life introduction to reproduction poultry farming food from animals

During ___ period, they require sufficient space to avoid overcrowding enabling proper growth

  1. Growing

  2. Egglaying

  3. Production

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

During the growing period, poultry birds require adequate space to prevent overcrowding, which can lead to stress, disease, and stunted growth. Proper spacing ensures efficient access to feed and water.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

Profit sharing among members in an HUF is done according to _______.

  1. members status in family

  2. amount of work done by a member

  3. equally

  4. according to the age of the member
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In an HUF, the profit is shared equally among the coparceners, regardless of their age, status, or the amount of work they contribute to the business.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

In a HUF business all co-parceners have equal share in the profits of the business.

  1. False

  2. True

  3. Partly true

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

In a HUF business all co-parceners have equal share in the profits of the business- this is a true statement. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

Multiple choice geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

A MNC is defined by an organisation ___________.

  1. carrying out production in more than one country

  2. having sales in more than one country

  3. having a multi-ethnic workforce

  4. having-suppliers in more than one country
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

MNC refers to an organisation which has its headquarter in home country and operates in two or more countries through its subsidiaries being set up there. Hence, a MNC is defined by an organisation carrying out production in more than one country.

Multiple choice geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

Looking at the past, we find that MNCs have been a major force in the process of Globalization since last ____________.

  1. forty years

  2. thirty years

  3. fifty years

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

If we look at the past thirty years or so, we find that MNC's have been a major force in the globalisation process connecting distant regions of the world.

Multiple choice civics a house outside village public property public property and its protection different types of houses

Dairy can be classified as a work which requires ____________.

  1. Physical Hard work

  2. Mental Hard work

  3. Both

  4. None
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
As well as milking cows, one will have to do many other things around the farm as a dairy worker. For example, one may have to:

monitor cow health and treat unwell animals
measure and monitor the amount of grass and supplementary feed available
put up temporary fences
use tractors and machinery to feed cows
help with calving
drive a tractor, motorbike or quad bike
feed animals.
All these are strenuous physical labour. Hence, Option A is correct. Dairy farming does not require exercise of the intellectual faculties, hence, incorrect. 
Multiple choice organization of commerce and management emerging trends in business definition, scope and benefits of e-business emerging service business in india emerging modes of services

24x7 working is an advantage of _________.

  1. sole proprietorship

  2. tele shopping

  3. e-commerce

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

In e-commerce type of business , transactions can be done 24*7 since there is not any store, there is also not an opening  and closing time.E-commerce provides the flexibility of time i.e. one can purchase the product whenever or wherever he wants to.

Multiple choice economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

Which of the following led to decline in industrial growth?

  1. Decreasing demand of domestic products

  2. Domestic manufacturers were facing competition from imports

  3. Inadequate investment in infrastructure

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Industrial growth has recorded a slowdown. This is because of decreasing demand of industrial products due to various reasons such as cheaper imports, inadequate investment in infrastructure etc. Cheaper imports have replaced the demand for domestic goods. Domestic manufacturers are facing competition from imports.
Multiple choice power work and power work, energy and power physics energy and its forms

In a factory, due to a sudden strike the work usually done in a day took a longer time. Which of the following happened?

  1. Power increased

  2. Power decreased

  3. Energy increased

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

Power $=\dfrac{work \quad done}{time}$

Since time is increased,power decreased.