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 organization of commerce and management employment opportunities in commerce franchising outsourcing and franchising employment opportunities in insurance sector and capital market

A business can achieve total process optimization by combining the _____ categories.

  1. offshore vendors

  2. nearshore vendors

  3. onshore vendors

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

A business can achieve total process optimization if its all the vendors including offshore, nearshore and onshore are combined together for the efficiency in business activities. 

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

In his famous treatise Principles of Economics, Marshall asserts important factors of production as:
I. Land
II. Furniture
III. Labour
IV. Capital
V. Building
VI. Organization
VII. Plant & machinery
Select the correct answer from the options given below.

  1. I, V, III, IV

  2. IV, III, II, VII

  3. I, III, IV, VI

  4. IV, II, I, V
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to the "Principles of Economics" the factors of production included four important inputs i.e Land, Labour, Capital and Organisation. Land refers to the Machines, Capital to the Money, Labour to human resources. With the time,many new factors has been added.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Analysis be done in the support of experts and right results are _________.

  1. Drafted

  2. Crafted

  3. Rafted

  4. Drafted and crafted
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Analysis helps in drawing conclusions. The end result of any analysis is an answer. Analysis be done in the support of experts and the right results are crafted so that a brief and accurate answer can be drawn.

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

The low cost of production for an international company is due to _________.

  1. low cost of labour

  2. low cost of raw material

  3. technically qualified workforce

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

The low cost of production for an international company is due to low cost of material and labour and technically qualified workforce. The international partner thus gets the products of required quality and specifications at a much lower cost than what is prevailing in the home country. 

Multiple choice

maximum consumption of rubber is made of

  1. auto tyres and tubes

  2. footwear

  3. beats and hoses

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

The automotive industry is the largest consumer of natural and synthetic rubber, primarily for the production of tires and tubes.

Multiple choice

What is the equation for Efficiency?

  1. Eff = useful output x total input

  2. Eff = useful output / total input

  3. Eff = total input / useful output

  4. Eff = waste output / total input
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Efficiency is defined as the ratio of useful energy or power output to the total energy or power input.

Multiple choice

What's the order of the product life cycle?

  1. Introduction, growth, maturity, decline

  2. Growth, introduction, maturity, decline

  3. Decline, maturity, growth, introduction

  4. Maturity, introduction, growth, decline
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The product life cycle describes the stages a product goes through from its initial launch to its eventual removal from the market: introduction, growth, maturity, and decline.

Multiple choice business organisation capital market concept of financial market introduction to financial markets meaning and definition of financial market

To examine the productivity, a banker chooses the following criteria:

  1. Labour efficiency

  2. Capital efficiency

  3. Fixed assets efficiency

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

Productivity in a business context is a multifaceted measure that includes labor, capital, and asset efficiency to determine overall operational effectiveness.

Multiple choice geography manufacturing industries in india - i : agro-based location of industries distribution and classification of industries in india industrialisation and industrial belts

The manufacturing industries are a scale to judge.

  1. social strength of a country

  2. cultural strength of a country

  3. political strength of a country

  4. economic strength of a country
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The manufacturing industries are a scale to judge economic strength of a country.

Multiple choice geography manufacturing industries in india - i : agro-based location of industries distribution and classification of industries in india industrialisation and industrial belts

__________ is not a physical factor which contributes to the location of individual industries.

  1. Power resources

  2. Favorable climate

  3. Labour

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

Many important factors involved in the location of individual industries are of relative significance, e.g., availability of raw materials, power resources, water, labour, markets and the transport facilities in which labour is not a physical factor.

Multiple choice geography manufacturing industries in india - i : agro-based location of industries distribution and classification of industries in india industrialisation and industrial belts

The ideal location of a sugar mill is near the sugarcane producing areas because:

  1. The government policies are favourable

  2. The basic raw material is heavy, bulky, perishable

  3. Availability of transport

  4. Establishment of industries is less expensive

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

Sugarcane is a bulky raw material and also perishable, i.e, its sucrose content goes on decreasing with time. Therefore, it is necessary to crush sugarcane within 24 hours of harvesting.