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 business organisation management - nature, significance and scope management as an art, science and profession management as art, science and profession comparison of business, profession and employment levels and functions of management management functions functions and levels of management

Mangement is _______ science.

  1. Developed

  2. Developing

  3. Well settled

  4. Exact
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Management is developing science. It can referred as a science of getting things done efficiently and effectively in order to reach organizational objectives.

Multiple choice economics environment and sustainable development need for sustainable development environmental economics sustainable development

About $23\%$ of energy consumed is obtained from ________ sources.

  1. commercial

  2. non-commercial

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In many economic contexts regarding India's energy consumption, non-commercial sources (like firewood and dung) account for a significant portion of energy used in rural areas, often cited around 20-25 percent.

Multiple choice economics employment: growth, informalisation and other issues measures to alleviate unemployment unemployment measures unemployment and employment generation

AGMARK is __________.

  1. a cooperative for egg production

  2. regulated agricultural market

  3. farmer's cooperative

  4. a quality guarantee stamp for commodities like eggs, ghee, honey etc.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

AGMARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection.

Multiple choice commercial applications treasure under the ground conservation of mineral resources distribution and conservation of mineral resources indian mineral and power resources

Consider the following statements and select the correct ones:-
a)  Iron and steel industries developed around Lake Michigan in USA due to availability of good quality coal.
b) Pittsburg - Youngstown area is the leading producer of steel in USA
c) The Lorraine area in France is significant for steel production.
d) The south Manchurian region accounts for nearly 60% of China's pig-iron production .

  1. a, c ,d

  2. a, b, d

  3. b, c, d

  4. b, c
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statements a, b, and d are accurate descriptions of industrial geography. Statement c is incorrect because Lorraine is primarily known for iron ore, not as a primary steel production hub in the modern context compared to other regions.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

The manufactured goods are called _______.

  1. physical capital

  2. consumers

  3. utility

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

Manufactured goods such as machinery, buildings, or computers, etc.,  are called the physical capital. In economic theory, physical capital is one of the three primary factors of production.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

"All those man-made goods which are used in further production of wealth." This is the definition of _________.

  1. goods

  2. production

  3. capital

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

Capital can be used over a long period of time. When used efficiently over a long period of time it will generate wealth for the entrepreneur. 

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

Money, fuels, etc. are the examples of _________ capital.

  1. trade capital

  2. fixed capital

  3. sunk capital

  4. floating capital
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Floating capital, also known as circulating capital, refers to assets that are used up or transformed during the production process, such as raw materials, fuel, and cash.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

Capital which is invested in the private sector or by people privately is known as ____________.

  1. public capital

  2. private capital

  3. national capital

  4. international capital
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Private capital refers to that capital which is invested in the private sector or by people privately. This capital is used to generate income for the people operating in the private sector.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

The capital which directly helps in the production of goods, e.g. machines, tools, factories, etc. is termed as ____________.

  1. consumption capital

  2. production capital

  3. private capital

  4. public capital
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Production capital refers to that capital which is associated with the production mechanism directly. It is used in the process of production in the physical form, i.e, in the form of machines, tools, etc.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

When the capital is obtained from foreign countries and used in our country, it is called ___________.

  1. external capital

  2. internal capital

  3. national capital

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

Capital obtained from foreign sources and invested domestically is classified as external capital, as opposed to internal capital generated within the country.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

All those items that yield income to the society e.g. machinery, plant, factories, farms, canals, railways, mines, etc. are called ___________.

  1. trade capital

  2. social capital

  3. personal capital

  4. circulating capital
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Machinery, plant, factories, canals, railways, mines, etc is the infrastructure that assists in yielding income for the society. Thus, they are known as social capital.