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

The industries requiring large quantities of _____ are located near the places having abundant availability of that raw material.

  1. Raw materials

  2. Finished goods

  3. Average raw materials

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

The industries requiring large quantities of heavy raw materials are located near the places having abundant availability of that raw materials. This is the basic step taken by any industries to reduce transportation cost of raw material.

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

The industrial sector uses about _____ of the total commercial energy available all over the world.

  1. 30%

  2. 45%

  3. 60%

  4. 70%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

While energy consumption varies by region, the industrial sector is widely recognized as accounting for a significant portion of global commercial energy usage, with 70% being the commonly cited figure in many textbooks.

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

_____ is essential to procure raw materials from the sources to the industry and transfer the finished products to the market.

  1. Capital

  2. Labour

  3. Power

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

Transport is essential to procure raw materials from the sources to the industry and transfer the finished products to the market. Even we can say transport is the back bone of any industry without transport we cannot produce our product in market for sale.

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

An unit in which investment in Plant and Machinery is up to Rs. 5 lakhs is known as____.

  1. small scale unit

  2. ancillary unit

  3. tiny unit

  4. large scale unit
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In Indian industrial classification, units with very low investment in plant and machinery (historically up to 5 lakhs) are categorized as 'tiny units'.

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

All of the following can cause sickness to an industrial unit except ____________.

  1. demand recession

  2. uneconomic size

  3. high productivity of labour and capital

  4. financial mismanagement
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
The causes of industrial sickness are demand recession, uneconomic size, financial mismanagement, labour unrest, working capital shortage, cost escalations, shortage of raw materials, out-dated machinery and equipment and so on. While 'high productivity of labour and capital' will eradicate industrial sickness.
Multiple choice evs a seeds tells a farmer's story manure manures and fertilisers water absorption organ

______ is manufactured artificially in the industrial units by the use of chemicals and are used for commercial purpose.

  1. Fertilizer

  2. Compost

  3. Both A and B

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

A chemical fertilizer/artificial fertilizer is defined as any inorganic material of wholly or partially synthetic origin that is added to soil to sustain plant growth. Organic fertilizers are substances that are derived from the remains or byproducts of natural organisms which contain the essential nutrients for plant growth.

Thus, the correct answer is option A.

Multiple choice labour and its division social stratification labour sociology

With the emergence of stratified division of labour, ____________ starts in the society.

  1. Equality

  2. Inequality

  3. Both

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

Division of labour is separation or specialisation of jobs, works or tasks performed by people on the basis of their skills and specialisation. Social stratification is social differentiation where society is divided into groups based on their occupation, income, wealth, status etc. Stratified division of labour attract social inequality as some people specialise in particular task are not given proper resources or their share in society. It lead to alienation and accumulation of wealth and drying of income sources.

Multiple choice functional area of management financial management nature and significance of management organisation of commerce and management business studies

A decision to acquire a new and modern plant to upgrade an old one is a______________.

  1. Financing decision

  2. Working capital decision

  3. Investment decision

  4. Dividend decision
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Investment Decision:
Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions.
It includes Decisions relating to the disposal and acquiring and upgrading new assets.
Multiple choice functional area of management financial management nature and significance of management organisation of commerce and management business studies

With an increase of investment in fixed assets, there is a commensurate ________ in the working capital.

  1. decrease

  2. increase

  3. equality

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

Net working capital= current asset- current liablities

Therefore increase in investments in fixed assets will lead to increase in the working capital

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

Which among the following determinants of aggregate supply are held to be constant in the short run?

  1. Natural resources

  2. Stock of capital

  3. State of technical knowledge

  4. All of the above
Reveal answer Fill a bubble to check yourself
D 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. The determinants of aggregate supply are natural resources, Human resources which refers to labor, stock of capital which refers to machinery and tools used in production and state of technical knowledge.

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

Which among the following determinants of aggregate supply is held to be variable in the short run?

  1. Human resources

  2. Stock of capital

  3. State of technology

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

Aggregate supply refers to the sales proceeds from the desired level of output in the economy during an accounting year. Human resources which refers to labor is held to be variable in short run as its application can be changed depending on the requirement of the output in the market. Human resources can be increased or decreased as per the requirement in the market.