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 economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

_____ represents the stock of resources which help in producing goods or commodities, whereas _____ represents the flow of goods and services.

  1. Wealth, Income

  2. Income, Wealth

  3. Product, Wealth

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

  • Wealth: It is defined as the stock of resources which can be used at present or in the future.
  • Income: It is the money obtained by flow of goods and services on regular basis.

Multiple choice organization of commerce and management warehousing importance, types and documentation in warehousing meaning of warehousing and warehousing introduction to services

__________ warehouse divides the the commodities stored into smaller quantities. 

  1. Consolidation

  2. Break the bulk

  3. Stock piling

  4. Price stabilsation
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Consolidation: In this function the warehouse receives and consolidates, materials/goods from different production plants and dispatches the same to a particular customer on a single transportation shipment.

Break the bulk: The warehouse performs the function of dividing the bulk quantity of goods received from the production plants into smaller quantities.

Stock piling: Warehousing is used for the seasonal storage of goods to select businesses. Goods or raw materials which are not required immediately for sale or manufacturing are stored in warehouses.

Price stabilization: By adjusting the supply of goods with the demand situation, warehousing performs the function of stabilizing prices.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Value Added Method involves _______.

  1. identifying the producing enterprise and classify them into industrial sectors according to their activities

  2. estimating net value added by each producing enterprise as well as each industrial sector and adding up the net value added by all the sectors

  3. both A and B

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

The Value Added Method involves both identifying sectors and calculating the net value added by each to determine the total GDP contribution.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Countries which are industrially developed have _______ per capital income.

  1. higher

  2. lower

  3. lowest

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

Industrially developed nations typically have a higher per capita income due to higher productivity and value addition in their economies.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Over the years, the value added by industrial sector in the GDP has ____.

  1. improved

  2. declined

  3. remained constant

  4. hasn't shown any specific trend
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Over the decades, the industrial sector's contribution to GDP has generally improved as the economy shifted from agrarian to industrial and service-based.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Intermediate goods means _________.

  1. minerals, fertilizers, cement , steel , iron etc.

  2. machinery, machine tools etc.

  3. chemicals, rubber, plastic, coal etc.

  4. man-made fibers, beverages, watch etc.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Intermediate goods are goods used as inputs in the production of other goods, such as chemicals, plastics, and rubber.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Consumer goods means ________.

  1. minerals, fertilizers, cement, steel, etc.

  2. machinery, machine tools etc.

  3. chemicals, rubber, plastic, coal etc.

  4. man-made fibers, beverages, watches etc.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Consumer goods are final products purchased by individuals for personal use, such as watches, beverages, and fibers.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Public sector is now of size & _______.

  1. large, diversified

  2. small, concentrated in few areas

  3. large, concentrated in few areas

  4. small but diversified
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The public sector in India grew significantly in size and became highly diversified across various industries to drive development.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Pattern of industrial development spice independence has been ________.

  1. balanced

  2. skewed

  3. lopsided

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

The pattern of industrial development in India post-independence is often described as lopsided because it favored certain regions or heavy industries over others.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

The higher the prices of capital relative to the prices of labour, the more production techniques should be ____________.

  1. labour intensive

  2. capital intensive

  3. fixed

  4. labour or capital intensive and we cannot say which without additional information.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Beacause the prices of capital are higher than that of labour hence the technique of production used should be labour intensive. 

One major reason behind this would be the production costs would be lesser if such techniques are used.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Which of the following is a reason for small scale industries is more labor intensive? 

  1. Small industries cant afford high amounts of capital

  2. Small industries can afford high amounts of capital

  3. Labor is very expensive

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

Small-scale industries are labor-intensive primarily because they lack the capital to invest in expensive, automated machinery.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Which of the following licenses were required by industries? 

  1. To establish an industrial unit

  2. To expand production

  3. To get tax benefits

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

Under the license raj, industries required licenses for establishing units, expanding production, and diversifying, which were all part of the regulatory framework.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

As Industrialization grows, the role of capital goods vs-a-vis consumer goods ____________.

  1. increases

  2. decreases

  3. remains relatively constant

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

As industrialization progresses, the demand for capital goods (machinery and equipment) increases relative to consumer goods to support further production and infrastructure development.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Capital employed per worker in industry was ______.

  1. low

  2. high

  3. medium

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

Historically, Indian industry has been characterized by labor-intensive methods, resulting in a relatively low amount of capital employed per worker.