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

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. 

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).