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 technology packaged enterprise solutions
  1. Commodities

  2. IM&S (Indirect Materials & Services)

  3. EME (External Manufacturing)

  4. None Of the Above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In this internal procurement training matching quiz, item '1' corresponds to the EME (External Manufacturing) sector. Other options such as Commodities and IM&S (Indirect Materials & Services) represent distinct purchasing categories or groups within the organizational hierarchy, making EME the intended match.

Multiple choice technology packaged enterprise solutions
  1. Raw Materials

  2. Pack Materials

  3. IM&S Stocked Item

  4. Finished Products

  5. a

  6. b

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Raw materials are unprocessed or basic materials that are used in the production process. They have not undergone any manufacturing transformation yet. Pack materials are used for packaging, IM&S are indirect materials, and finished products are completed goods ready for sale.

Multiple choice technology enterprise content management
  1. Direct Material

  2. Commodity

  3. IM&S, Spares

  4. Milk

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Kraft uses EBP (Enterprise Buyer Professional) specifically for purchasing Indirect Material & Services (IM&S) and Spares. Direct Materials and Commodities typically follow different procurement processes (often through core ERP/MRP systems), and Milk is not relevant in this SAP context. Option A (Direct Material) and B (Commodity) are incorrect as they use different procurement channels at Kraft.

Multiple choice technology packaged enterprise solutions
  1. Backflush

  2. Manual consumption through PI sheet

  3. Depends on business decision if to include in PI sheet or to backflush

  4. Either B or C

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The consumption method for high-value materials is not fixed; instead, businesses decide whether to use automated backflushing or manual consumption via the PI sheet based on control needs.

Multiple choice
  1. output is greater than input

  2. output is less than input

  3. output is equal to input

  4. output is negative

Reveal answer Fill a bubble to check yourself
C Correct answer
Multiple choice

The author uses the example of “the potter's wheel” to

Directions: Read the following passage and answer the question.
As to machinery, Marx and his followers, maintain that it represents nothing but the average labor of the past; and so long as it exists only in its smaller and simpler forms, the devising and constructing of which are not referable to any faculties which we are able to distinguish from those of the average laborer, we have further seen that the theory of Marx holds good. Labor produces alike both the finished goods and its implements. But in proportion as machines or other contrivances, such as vessels, grow in size or complexity, and embody, as they do in their more modern developments, ingenuity of the highest and knowledge of the most abstruse kinds, the situation changes; and we are able to identify certain faculties as essential to the ultimate result, which affect the work of the laborers, but which do not emanate from themselves. Any three men of average strength and intelligence might make a potter's wheel together, or build a small boat together, as they frequently do now, their several tasks being interchangeable, or assigned to each of them by easy mutual agreement. The business of directing labor has not separated itself from the actual business of laboring. Each man knows the object of what he does, and can co-ordinate that object with the object of what is done by his fellows. But when the ultimate result is something so vast and complicated that a thousand men instead of three have to co-operate in the production of it, when a million pieces of metal, some large and some minute, have to be cast, filed, turned, rolled, or bent, so that finally they may all coalesce into a single mechanical organism, no one laborer sees further than the task which he performs himself. He cannot adjust his work to that of another man, who is probably working a quarter of a mile away from him, and he has in most cases no idea whatever of how the two pieces of work are related to each other. Each laborer has simply to perform his work in accordance with directions which emanate from some mind other than his own, and the whole practical value of what the laborers do depends on the quality of the directions which are thus given to each.
In other words, in proportion as the industrial process is enhanced in productivity by the concentration on it of the higher faculties of mankind, there is an increasing fission of this process as a whole into two kinds of activity represented by two different groups. We have no longer merely although we have this still an increasing division of labor; but we have the laborers of all kinds and grades separating themselves into one group on the one hand, and the men who direct their labor, as a separate group, on the other hand.

  1. highlight how division of labor works in its most basic form

  2. give an example of Marxian simple division of labor

  3. show his support for teamwork

  4. show the inseparability between labor and directing of labor

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Correct. Here, there is no distinction between the labor and directing of labor.

Multiple choice

What is the tone of the passage?

Directions: Read the following passage and answer the question.
As to machinery, Marx and his followers, maintain that it represents nothing but the average labor of the past; and so long as it exists only in its smaller and simpler forms, the devising and constructing of which are not referable to any faculties which we are able to distinguish from those of the average laborer, we have further seen that the theory of Marx holds good. Labor produces alike both the finished goods and its implements. But in proportion as machines or other contrivances, such as vessels, grow in size or complexity, and embody, as they do in their more modern developments, ingenuity of the highest and knowledge of the most abstruse kinds, the situation changes; and we are able to identify certain faculties as essential to the ultimate result, which affect the work of the laborers, but which do not emanate from themselves. Any three men of average strength and intelligence might make a potter's wheel together, or build a small boat together, as they frequently do now, their several tasks being interchangeable, or assigned to each of them by easy mutual agreement. The business of directing labor has not separated itself from the actual business of laboring. Each man knows the object of what he does, and can co-ordinate that object with the object of what is done by his fellows. But when the ultimate result is something so vast and complicated that a thousand men instead of three have to co-operate in the production of it, when a million pieces of metal, some large and some minute, have to be cast, filed, turned, rolled, or bent, so that finally they may all coalesce into a single mechanical organism, no one laborer sees further than the task which he performs himself. He cannot adjust his work to that of another man, who is probably working a quarter of a mile away from him, and he has in most cases no idea whatever of how the two pieces of work are related to each other. Each laborer has simply to perform his work in accordance with directions which emanate from some mind other than his own, and the whole practical value of what the laborers do depends on the quality of the directions which are thus given to each.
In other words, in proportion as the industrial process is enhanced in productivity by the concentration on it of the higher faculties of mankind, there is an increasing fission of this process as a whole into two kinds of activity represented by two different groups. We have no longer merely although we have this still an increasing division of labor; but we have the laborers of all kinds and grades separating themselves into one group on the one hand, and the men who direct their labor, as a separate group, on the other hand.

  1. Analytical

  2. Descriptive

  3. Critical

  4. Rambling

  5. Inquisitive

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Correct. The author describes how division of labor, as it gets more complex, leads to distinction within workers.

Multiple choice
  1. AC = AR

  2. MC = AC

  3. MC = MR

  4. AR = MR

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Productive efficiency means producing at minimum average cost. The MC curve intersects the AC curve at its minimum point. When MC = AC, the firm has reached the minimum efficient scale and is productively efficient. This occurs naturally in perfect competition in the long run due to free entry and exit.

Multiple choice
  1. The mechanization of farming in the village doubled the corn yield while the previous year's costs were cut in half.

  2. The mechanization of farming in the village doubled the corn yield while cutting costs to half those of the previous year.

  3. The mechanization of farming in the village doubled the corn yield as costs were cut to half of the previous year's.

  4. The farming mechanization in the village doubled the corn yield as it cut in half the previous year's costs.<a �b�=""></a>

  5. The farming mechanization in the village doubled the corn yield while costs were cut to half that of the previous year

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

'Doubling the crop yield' is in the active voice, so the latter part should also be in the active voice. The  contrast provided by 'while' has to be maintained. Hence, (3) and (4) are ruled out. (5) maintains the latter part in passive voice. Answer: (2)