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 geography basic problems of an economy introduction to natural resources (eco) understanding development: perspectives, measurement and sustainability resources - types and conservation

What does not make a substance a resource?

  1. Utility

  2. Value

  3. Quantity

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

Resources are assets that are used by the living systems for the survival and development.

Mere presence of a thing in certain quantity do not make a resource. But it should have a utility, value and quality by the people.

Multiple choice geography basic problems of an economy introduction to natural resources (eco) understanding development: perspectives, measurement and sustainability resources - types and conservation

Which of the following are the governing factors of carrying capacity _______.

  1. Food

  2. Water

  3. Raw material

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

  • The number of people, animals, or crops which a region can support without environmental degradation is called carrying capacity.
  • It can simply be called as environment’s maximal load.
  • The factors which govern the carrying capacity is food, water, raw material etc. 

Multiple choice geography basic problems of an economy introduction to natural resources (eco) understanding development: perspectives, measurement and sustainability resources - types and conservation

The paradox of diamond is more costly than water is explained by ___________.

  1. marginal utility concept

  2. scarcity

  3. relative cost of production

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

The paradox of value (diamond-water paradox) is explained by the fact that the marginal utility of a good determines its price, not its total utility. Water is abundant (low marginal utility), while diamonds are scarce (high marginal utility).

Multiple choice social science public health and the government energy and health infectious diseases - transmission and prevention infectious diseases and how to prevent them

Economic Growth and demand for energy are __________ related.

  1. directly

  2. inversely

  3. not

  4. nothing can be said
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Economic growth requires industrial and commercial activity, which inherently demands more energy, making the relationship directly proportional.

Multiple choice social science public health and the government energy and health infectious diseases - transmission and prevention infectious diseases and how to prevent them

Generally, a $3\%$ rise in industrial production is accompanied by a ________ in energy consumption.

  1. $0\%$ increase
  2. $1\%$ increase
  3. $2\%$ increase
  4. $3\%$ increase
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is a specific empirical observation often cited in development economics textbooks regarding the energy intensity of industrial growth in developing economies.

Multiple choice general knowledge impact of technology on livelihoods animal husbandry and fishery cattle farming agriculture sector

The Green revolution resulted in 1970s in the establishment of.

  1. Light engineering industry

  2. Heavy industry

  3. Medium

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

The Green Revolution increased agricultural productivity, which created a surplus that supported the growth of light engineering industries (e.g., manufacturing of tractors, pumps, and farm tools).

Multiple choice economics producer's equilibrium equilibrium of a firm shifts in demand and supply liquidity preference and profit

Innovation theory of profit was propounded by ________________.

  1. Jacob Viner

  2. Joesph. A.Schumpeter

  3. F.B Hawley

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

Joseph A. Schumpeter is the economist who introduced the Innovation Theory of Profit. He argued that entrepreneurs earn profit by introducing new products, methods of production, or markets, which disrupts the existing economic equilibrium.

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

__________ is responsible for revival of public sector enterprises.

  1. NTPC

  2. BIFR

  3. BRPSE

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

The government of India, in order to solve the problems of industrial sickness had set up a Board of Industrial and Financial Reconstruction under the purview of sick industrial companies act, 1985. Hence, BIFR is responsible for the revival of Public Sector Enterprises.

Multiple choice

What are the three main factors of production?

  1. Land, labor, and capital

  2. Land, labor, and technology

  3. Land, labor, and entrepreneurship

  4. Land, labor, and management
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The three main factors of production are land, labor, and capital. Land is the natural resources that are used to produce goods and services. Labor is the human effort that is used to produce goods and services. Capital is the physical assets that are used to produce goods and services.

Multiple choice

What is the primary factor determining the supply of fish in the agricultural fisheries market?

  1. Availability of fish stocks

  2. Fishing technology

  3. Government regulations

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

The supply of fish in the agricultural fisheries market is influenced by the availability of fish stocks, fishing technology, and government regulations.

Multiple choice

The process of transferring ownership of government-owned enterprises to the private sector is known as:

  1. Privatization

  2. Nationalization

  3. Deregulation

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

Privatization involves the transfer of ownership and control of government-owned enterprises to the private sector.

Multiple choice

The process of reducing government regulations and restrictions on businesses and industries is known as:

  1. Deregulation

  2. Reregulation

  3. Nationalization

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

Deregulation involves the reduction or elimination of government regulations and restrictions on businesses and industries.

Multiple choice

What is the primary determinant of the demand for labor?

  1. Wage rate

  2. Price of the final product

  3. Cost of capital

  4. Level of technology
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The demand for labor is primarily determined by the price of the final product that the labor is used to produce. A higher price for the final product will lead to a higher demand for labor.

Multiple choice

What is the impact of technological progress on the demand for labor?

  1. Increases demand for labor

  2. Decreases demand for labor

  3. Has no impact on demand for labor

  4. Depends on the specific technology
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The impact of technological progress on the demand for labor depends on the specific technology being introduced. Some technologies may increase the demand for labor, while others may decrease it.