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 functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

Production management is important because _______.

  1. it helps the business firm to achieve all its objectives

  2. it helps the firm to satisfy its customers

  3. it helps to introduce new products in the market

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

Production management is essential because it integrates processes that help achieve firm objectives, satisfy customer requirements through quality and availability, and support innovation.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

The main traditional function of production management was to control labour costs which at that time constituted the major proportion of costs associated with production.

  1. True

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

Historically, before the automation and complexity of modern manufacturing, labor costs were indeed the most significant variable cost in production, making labor control a primary focus.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

Which of the following is active factor of production?

  1. Land

  2. Labour

  3. Capital

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

In economics, land and capital are considered passive factors of production, while labor and organization (entrepreneurship) are considered active factors because they initiate and coordinate the production process.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

Rack jobbers are most common in the.

  1. Stock markets

  2. Food business

  3. Automobile business

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

Rack jobbers are wholesalers who maintain displays of merchandise in retail stores, commonly found in the food and grocery business where they manage specific product racks.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

_________ offers the opportunity to produce goods as per customer and specific need.

  1. Job method

  2. Batch method

  3. Flow method

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

While job methods are specifically designed for custom orders, the question asks which method offers the opportunity to produce goods as per customer need. In broad contexts, various production methods can be adapted to customer specifications.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

Main factor for spending on R and D are ________.

  1. for survival in the market

  2. for change in environment

  3. for change in government policies

  4. change in company's image
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Research and development (R&D) is primarily driven by the need for innovation to maintain a competitive advantage and ensure long-term survival in a changing market.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

Producing on a large scale reduces the _________ of the product.

  1. Average cost

  2. Average price

  3. Average profit

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

The industrial revolution was the transition to new manufacturing process in the period from 1760 to sometime between 1820 and 1840. This transition includes going from hand production methods to  machine, new chemical manufacturing and iron production process. This gave rise to the development of machine tools and factory system. Due to the use of machine, large number of goods could be produced in a very short period of time. Vast number of goods were produced in a smaller period of time due to which the average cost of production reduced. This increased the profitability of the products and company earned good revenue.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

Greater emphasis was placed on _______ the product.

  1. Increasing

  2. Decreasing

  3. Sustaining

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

With the help of industrial revolution, the production became much easier and cheaper. To attract the consumer's to buy the company's product in competition to the rivals, the company had to improve the quality and features of the product.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

______ could be maximized by producing at large scale. 

  1. Sales

  2. Value

  3. Profits

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

The industrial revolution was the transition to new manufacturing process in the period from 1760 to sometime between 1820 and 1840. This transition includes going from hand production methods to  machine, new chemical manufacturing and iron production process. This gave rise to the development of machine tools and factory system. Due to the use of machine, large number of goods could be produced in a very short period of time. This increased the profitability of the products and company earned good revenue.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

R&D activity is a/an ___________.

  1. Legal factor

  2. Technological factor

  3. Political factor

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

R&D is fundamentally a technological factor, as it involves the development of new products, processes, and scientific advancements.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

_______ is research that has already been conducted for other purposes.

  1. Company research

  2. Secondary research

  3. Industry research

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

Secondary research refers to data that has already been collected by someone else for a different purpose. Primary research, by contrast, involves collecting new data specifically for the current project.

Multiple choice india: states and union territories overview of india general knowledge

Choose the correct option to complete the statements given below:
One-sixth of the produce was taken as tax from

  1. Farmers

  2. Hunter-gatherers

  3. Crafts-persons

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

The Economy during the Gupta period was moving from 18 sources or types of Taxes levied on the people.

The greater part of it was spent on works of public welfare. Land revenue was the main source was generally fixed at one-sixth of the produce.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

The term industrialization involves ___________.

  1. superior techniques of production

  2. modern techniques

  3. both (a) and (b)

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

Industrialization involves both the adoption of superior production techniques and the implementation of modern organizational and technological methods to increase efficiency.