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 commercial studies concept of market and marketer meaning and importance of marketing meaning and definition of market introduction to marketing marketing environment meaning and definition of marketer role of marketing

When a firm is producing its own inputs or owns its own sources of distribution of outputs, it undergoes _____________.

  1. forward integration

  2. backward integration

  3. vertical integration

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

Vertical integration occurs when a company controls multiple stages of its supply chain, either by producing its own inputs (backward) or owning its distribution channels (forward).

Multiple choice

Examples include, gasoline, steam, and electricity

  1. Energy and power

  2. Manufacturing

  3. Construction

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

Energy and power systems are responsible for generating, storing, and distributing the energy needed to perform work, such as gasoline, steam, and electricity.

Multiple choice

To build up their economy, on what means of production did Japan focus?

  1. They focused on their agriculture.

  2. They placed an emphasis on arms and weapons production.

  3. They built up their cities and schools.

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

As Japan moved toward a militaristic state, the government prioritized heavy industry, specifically the production of arms, ships, and aircraft to support its expansionist goals.

Multiple choice

Inputs that are changed or converted in the operations process

  1. Transformed resources

  2. Primary industries

  3. Transforming resources

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

Transformed resources are the inputs that are converted, manipulated, or physically changed during operations, which include raw materials, information, and customers. Transforming resources are the tools and labor used to perform this conversion, rather than the items being converted.

Multiple choice

wealth in the form of money or other assets owned by a person or organization 

  1. capital

  2. entrepreneurship

  3. trade

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

Capital refers to financial assets or the financial value of assets, such as cash or machinery, owned by a person or organization to help run a business. Entrepreneurship is the process of starting a business, trade is the exchange of goods, and scarcity is the state of being in short supply.

Multiple choice

What are resources?

  1. Things we sometimes use.

  2. A stock or supply of something that we only use once.

  3. A stock or supply of something that has a value or purpose.

  4. A stock or supply of something that we use forever.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In geography and economics, a resource is defined as any stock or supply of materials, energy, or other assets that has a value or purpose for human use. Resources can be renewable or non-renewable, but they must serve a useful function rather than being used only once or lasting forever.

Multiple choice

How many new jobs can be created by shifting to a greener economy by 2030?

  1. 18 thousand

  2. 1 million

  3. 24 million

  4. 6 billion
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to the International Labour Organization (ILO), a transition to a green economy could create around 24 million new jobs globally by 2030. This shift involves adopting sustainable practices and clean energy sources, which will drive employment in new sectors.

Multiple choice

What each party exchanges must have ______________ value.

  1. Economic

  2. Legal

  3. Measurable

  4. No value is required
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For a contract to be enforceable, the consideration exchanged by each party must have legal value, meaning it must represent a legal benefit to the promisor or a legal detriment to the promisee. It does not need to have economic or measurable market value, as parties are free to contract for things of purely personal or subjective worth.

Multiple choice

Necessity is the mother of.....

  1. Invention

  2. Intervention

  3. Needs

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

This proverb means that when people really need to do something, they will find a creative way to do it. "Invention" is the correct word that completes this well-known saying.