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 theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply
The supply of durable goods is usually _____________.

  1. more elastic

  2. less elastic

  3. perfectly elastic

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

Durable goods can be stored over time, allowing producers to adjust their supply more easily in response to price changes compared to perishable goods. Thus, their supply is generally more elastic.

Multiple choice evs how to save fuel define fossil fuels conservation of fuels reason for finishing of materials (resources) fuel and conservation

If materials (resources) are finished then people will struggle for ______.

  1. LPG

  2. CNG

  3. both a and b

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

C is the correct option.if resources are finished then people will struggle for both CNG and LPG as both are obtained from fossils.They cannot be replenished soon.

Fossil Fuels are sources of energy that are formed from the accumulated remains of living organisms that were buried millions of years ago. 

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

If an industry is characterized by economies of scale then _________.

  1. barriers to entry are not very large

  2. long-run unit costs of production decreases as the quantity the firm produces increases

  3. capital requirement are small due to the efficiency of the large scale operation

  4. the costs of entry into the market are likely to be substantial
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In microeconomics, economics of scale are the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer's average cost per unit to fall as the scale of output is increased. "Economics of scale" is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

It is prudent to determine the size of the output when the industry is operating in the stage of______.

  1. increasing returns

  2. constant returns

  3. diminishing returns

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

In production theory, the stage of diminishing returns is where the marginal product begins to decline. This is the rational stage for a producer to determine the optimal output level to maximize efficiency.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Imports growth in pre crisis (1991) period was _________ than that in post crisis period.

  1. more

  2. less

  3. equal

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

Import growth in pre crisis( 1991 ) period was less than that in post crisis period since New Economic Policy was introduced in India in 1991, which resulted downfall of import growth. Import refers to the goods and services brought in from the abroad.

Multiple choice indian land resources land resources of karnataka land utilisation, its pattern and crops of karnataka geography

Agriculture provides food for the people and _____ to industries.

  1. Raw material

  2. Food

  3. Employment

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

Agriculture is the primary sector that supplies raw materials to agro-based industries, such as cotton for textiles or sugarcane for sugar mills. While it also provides food and employment, the specific relationship with industries is the provision of raw materials.

Multiple choice civics consumers' awareness consumer protection act of 1986 need for consumer awareness consumer : satisfaction and protection

The Agmark is meant for _____.

  1. industrial products

  2. dairy products

  3. agriculture products

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

Agmark is given for agricultural products. 
Agmark symbol ensures quality of agricultural products.
Products marked with ISI or Agmark symbol are considered to be of good standard.

Multiple choice elements of accounts company final accounts forms of statements of profit and loss operating profit (ebit) meaning, need and format of profit and loss account

The companies globalize their operations through defficient means ________________.

  1. Exporting directly

  2. Licensing / Franchising

  3. Joint venture

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

Companies use various strategies to enter foreign markets, including direct exporting, licensing, franchising, and forming joint ventures, to expand their global footprint.

Multiple choice commercial studies company final accounts forms of statements of profit and loss operating profit (ebit) meaning, need and format of profit and loss account

Operating profit is the profit a business earns from the business through the _________.

  1. operations

  2. activities

  3. both

  4. none
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Operating profit is specifically derived from the core operations of a business. While activities is a broad term, operations is the standard accounting terminology used in this context.

Multiple choice commercial studies company final accounts forms of statements of profit and loss operating profit (ebit) meaning, need and format of profit and loss account

Income derived from, normal operation of the business is called ________.

  1. normal income

  2. manufacturing income

  3. operating income

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

Operating income resulting from a firm's primary business operations (normal operations), excluding extraordinary income and expenses. Also called earning before interest and taxes. the measure revels an entity's ability to generate earnings from its operational activities.

Multiple choice economics production of food from animals contribution of louis pasteur discoveries by louis pasteur discovery of microorganisms animal husbandry and fishery cattle farming agriculture sector

Silver revolution is associated with the increase in the production of____________

  1. Meat

  2. Cereals

  3. Eggs

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

  • Silver revolution refers to the period in which there was a  tremendous increase in the production of eggs.

So, the correct answer is 'eggs'

Multiple choice commercial studies striving for a better environment unequal distribution of resources protecting our environment rules are for everyone

Value of a resource is dependent on its

  1. Quality

  2. Quantity

  3. Requirement and type of society

  4. All of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
  • A valuation can simply be defined “as an attempt to put monetary values or to environmental goods and services or natural resources”. It is a key exercise in economic analysis and its results provide important information about the values of environmental goods and services.
  • Value of a resource is dependent on its 'Requirement and type of society'.
  • So, the correct answer is 'Requirement and type of society'.
Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

The use of advanced technology in industrial production causes ______.

  1. fall in the unit cost of production and prices

  2. increase in the demand for goods

  3. increase in the demand for labour

  4. all the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Use of advanced technology helps to fasten the industrial productivity which in turn helps to uplift the economy. The use of advanced technology in industrial production causes:
a) fall in the unit cost of production and prices
b) increase in the demand for goods
c) increase in the demand for labour.
Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Macro factors of business environment are generally _______.

  1. as controllable as micro factors

  2. less controllable than micro factors

  3. more controllable than micro factors

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

The macro-environment includes those things that may impact businesses but which are outside of their control. It is the larger, external environment within which businesses operate from an industry or economic standpoint. It is also known as General or Remote environment. Macro factors include inflation, government budget, etc.