Economics · General Awareness

Economic Principles

1,087 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 income-output determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

_____________ refers to the minimum amount of sales proceeds which entrepreneurs expect to receive from the sale of output at any given point level of employment.

  1. Aggregate revenue

  2. Aggregate supply

  3. Aggregate income

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

Aggregate supply refers to the sales proceeds from the desired level of output in the economy during an accounting year. It is through this output only that the producer sector generates income in the economy at any given level of employment. Therefore, aggregate supply= consumption + savings.

Multiple choice economics income-output determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

The aggregate supply and employment in the economy depends upon the stock of __________, its quality and use.

  1. inventory

  2. capital

  3. either A or B

  4. neither A nor B
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Capital refers to the amount which is been invested by the owners of the firm which is used to employ people to work in the production process and also to acquire assets which is used in the production process, Therefore, he aggregate supply and employment depends on the quality and use of this stock of capital because if it is not used efficiently then it will not yield the desired level of output. 

Multiple choice economics income-output determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

The productive efficiency of labour and capital increases with the use of __________.

  1. natural resources

  2. technology

  3. both A and B

  4. neither A nor B
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The productive efficiency of labour and capital increases with the use of technology as it refers to the technical way of doing something in a more efficient and easy manner with discovery of some new techniques which increases the efficiency in production when mixed with other factors of production. 

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

In the short run, land, capital, technology remain constant.

  1. True

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

In short-run macroeconomic models, factors of production such as land, capital stock, and the level of technology are held constant to isolate the effects of changes in labor and aggregate demand.

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Inventory investment refers to investment in fixed capital assets. 

  1. True

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

Inventory investment refers to the change in the stock of unsold goods, raw materials, and work-in-progress held by firms, whereas fixed capital investment refers to assets like machinery and buildings.

Multiple choice industries in tamil nadu human geography in tamil nadu geography

Leather industry depends on _____.

  1. Human wealth

  2. Human capital

  3. Cattle wealth

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

Leather industry depends on cattle wealth. It is concerned with the treatment of raw pelt of animals to make them suitable for the manufacture of various articles.

Multiple choice industries in tamil nadu human geography in tamil nadu geography

Paper and pulp industry, honey and sandalwood products are the examples of _____.

  1. Mineral-based industries

  2. Agro-based industries

  3. Forest-based industries

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

Paper and pulp industry, honey and sandalwood products are the examples of Forest-based industries. India is one of fast growing forest-based industrial hub in the world.

Multiple choice industries in tamil nadu human geography in tamil nadu geography

Collective supply of raw material or collective ownership of industrial unit occurs in __________.

  1. Public sector

  2. Private sector

  3. Co-operative sector

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

Collective supply of raw material or collective ownership of industrial unit occurs in C0-operative sector.

The cooperative sector can be defined as that sector of the economy carried out by cooperatives, defined by the International Cooperative Alliance as “autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically

Multiple choice industries in tamil nadu human geography in tamil nadu geography

Basic goods are those produced on a large scale for _____ and local consumption.

  1. Export

  2. Import

  3. Consumer goods

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

Basic goods are the goods which itself may not have utility but other good derived from it have that utility. Cotton is a best example of basic good because apparels made from it have utility. In other words, raw materials used for further production of new items in agriculture, manufacture or construction are called basic goods. They are produced on a large scale for export and local consumption.

Multiple choice industries in tamil nadu human geography in tamil nadu geography

Cement, ceramic and petro-chemical industries are located very near to the source of the _____.

  1. Water

  2. Money

  3. Raw material

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

Cement, ceramic and petro-chemical industries are located very near to the source of the raw materials. Raw material is a very important factor for any type of industry. It is economical to locate these industries near to their source of raw materials. It helps in decreasing cost of production and delivery cost of goods to consumers. Transport cost also decreases if these industries are located near to their source of raw materials.

Multiple choice industries in tamil nadu human geography in tamil nadu geography

Bagasse, the sugar by-product, is used as a raw material for _____ industry.

  1. Fuel

  2. Paper

  3. Cement

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

When the sugarcane is crushed, a fibrous residue is left over after crushing. This sugar-by-product is known as Bagasse. The cellulose content is high in fiber of bagasse. Due to high cellulose content, it is used in cellulose industries like the pulp, paper, particle boards, cattle-feed etc. Bagasse is used as an important by-product.

Multiple choice industries in tamil nadu human geography in tamil nadu geography

In ________   very little investment involved.

  1. Large industry

  2. Small scale industry

  3. Cottage industry

  4. Medium Scale industries
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cottage industries are typically small-scale, home-based operations that require very little capital investment compared to larger industrial sectors.

Multiple choice organization of commerce and management recruitment methods meaning, nature, methods and sources of recruitment meaning, sources and methods of recruitment meaning and definition of recruitment

Change in technology, political factors, demand of population are _______ factors.

  1. Internal

  2. External

  3. Both (A) and (B)

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

Change in technology, political factors, demand of population are external factors. External factors of the business environment affect the activities of the business organization indirectly and which cannot b controlled by the organization.

Multiple choice zoology ecosystems decomposition in ecosystem ecosystem productivity and decomposition producers, consumers and decomposers

The ability to produce organic compound in unit time is

  1. Leaching

  2. Productivity

  3. Poaching

  4. Conductivity
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
  • Productivity is the rate of production of new biomass by an individual, population. 
  • Productivity is a key source of economic growth and competitiveness.
  •  A country's ability to improve its standard of living depends almost entirely on its ability to raise its output per worker, i.e., producing more goods and services for a given number of hours of work.
  •  Hence, The ability to produce the organic compound in unit time is Productivity.
  • So, the correct answer is 'Productivity'.