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 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 market for industrial goods in rural area is ______.

  1. narrow

  2. moderate

  3. broad

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

Due to lower purchasing power and limited infrastructure in many rural areas, the market for industrial goods has historically been narrow.

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

Higher Industrial output results in _________  income per head. 

  1. higher

  2. lower

  3. moderate

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

Higher industrial output generally leads to increased productivity and economic growth, which in turn results in higher income per head.

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 goods industries produce _______.

  1. materials, fertilizers, cement, steel, iron 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
B Correct answer
Explanation

Capital goods industries are those that produce machinery, machine tools, and equipment used to manufacture other goods.

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

Growth rate of industrial output over the planning period has been _______.

  1. satisfactory

  2. not upto the mark

  3. good

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

Over the various planning periods in India, the growth rate of industrial output is generally considered to have been satisfactory, despite various challenges.

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

Basic goods industries produce _______.

  1. materials, fertilizers, cement, steel, iron 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
A Correct answer
Explanation

Basic goods industries are those that produce raw materials and intermediate products like steel, iron, cement, and fertilizers, which serve as the foundation for other industries.

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

Mahalanobis model emphasized on ______.

  1. building basic & capital goods industries

  2. building basic industries

  3. building capital goods industries

  4. building consumer goods industries
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Mahalanobis model, which formed the basis of the Second Five-Year Plan, prioritized the development of heavy and capital goods industries to build a self-reliant industrial base.

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

Since independence, the structure of industry has shifted in favour of _______.

  1. basic, capital & intermediate goods

  2. basic goods only

  3. capital goods only

  4. intermediate goods only
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The industrial strategy post-independence focused heavily on shifting the structure toward basic, capital, and intermediate goods to reduce dependence on imports and build a strong domestic industrial foundation.

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

During 1951- 90 the strategy was to _______.

  1. develop consumer goods industries

  2. develop basic & capital goods industries by giving their responsibility to public sector

  3. develop intermediate goods industries

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

The strategy during 1951-1990 was characterized by the public sector taking the lead in developing heavy, basic, and capital goods industries, as these were seen as essential for long-term growth.

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

Since 1951, the number of small scale industries have witnessed _______.

  1. mammoth growth

  2. moderate growth

  3. negative growth

  4. no growth
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Since 1951, the government has actively promoted small-scale industries through various incentives, leading to a significant increase in their number and contribution to the economy.

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

Industrial sector has now become &_________.

  1. broad based & modernized

  2. narrow based & backward

  3. narrow based & modernized

  4. broad based but backward
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The industrial sector in India has evolved from a limited base to a broad-based structure that incorporates modern technology and diverse production capabilities.

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

For the development of cottage $7$ small scale industries _______________.

  1. Loans were provided

  2. Some production items were specially reserved

  3. Both a & b

  4. Neither a nor b
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The government supported small-scale and cottage industries through both financial assistance (loans) and protective measures, such as reserving specific items for exclusive production by these sectors.

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

Some of the characteristic feature involved with Industrial Policy development $1948-88$ were ___________.

  1. relaxation in MRTP Provision

  2. eelaxation in FERA Provision

  3. both a & b

  4. development of ago bored industries
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Industrial Policy development between 1948-88 saw relaxation in both MRTP (Monopolies and Restrictive Trade Practices) and FERA (Foreign Exchange Regulation Act) provisions. These relaxations were part of liberalization trends.

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

Industrialization involves  ___________.

  1. adoption of technologically superior techniques of production

  2. application of modern techniques of management and organization

  3. both (A) and (B)

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

Industrialization refers to a period where high growth rate in the economy can be achieved by industrial application which involves adoption of technology that supports superior techniques of production as well as use of modern techniques of management and organisation.

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

Presently industrial licensing is not applicable for _________.

  1. cigarettes

  2. industrial explosives

  3. alcohol

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

Presently industrial licensing is not applicable for electronic goods. Industrial license refers to the license which needs to be issued when an industry is to be set up. Industrial licensing is applicable for goods like cigarettes, industrial explosives and alcohol.