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

Scientists spent many years and worked hard to invent TV. (complex)

  1. Scientists spent many years and worked hard so that they can invent TV.

  2. Scientists spent many years but worked hard so that they could invent TV.

  3. Scientists spent many years and worked hard so that they could invent TV.

  4. Scientists spented many years and worked hard so that they could invent TV.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A complex sentence requires a dependent clause. Using 'so that' with the past tense 'could' correctly explains the purpose of the scientists' hard work.

Multiple choice

Large population supplies

  1. raw materials and manufactured goods

  2. access to fossil fuels

  3. a labor force

  4. an increase in capital
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A large population provides the necessary human resources or labor force required to operate factories and support industrial growth.

Multiple choice

As population increases, manufacturing output

  1. increases

  2. decreases

  3. remains constant

  4. depends on a variety of factors
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Manufacturing output is influenced by many variables, including technology, labor availability, capital investment, and resource access. A simple increase in population does not automatically guarantee an increase in manufacturing output.

Multiple choice

Industrialization results in a rapid

  1. rise in employment

  2. rise in production

  3. decrease in resources

  4. decrease in production
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The primary goal and result of industrialization is the mass production of goods through the use of machinery, leading to a rapid increase in output.

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.