Economics ยท 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

How has technological change affected the demand for labor in the agricultural sector?

  1. Increased demand for skilled labor

  2. Increased demand for unskilled labor

  3. Decreased demand for skilled labor

  4. Decreased demand for unskilled labor
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Technological advancements in agriculture have led to a decrease in the demand for unskilled labor, as machines and automation take over many tasks.

Multiple choice

Which of the following is NOT a type of cause?

  1. Efficient cause

  2. Final cause

  3. Formal cause

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

Final causes are not considered to be true causes in the modern scientific sense. They are more akin to purposes or goals, which do not have the same causal power as efficient, formal, and material causes.

Multiple choice

What is the term for the simultaneous production and consumption of a service?

  1. Intangibility

  2. Perishability

  3. Heterogeneity

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

Inseparability is the simultaneous production and consumption of a service.

Multiple choice

What is the term for the tendency of services to be consumed by people who are close to the place where they are produced?

  1. Intangibility

  2. Perishability

  3. Heterogeneity

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

Locality is the tendency of services to be consumed by people who are close to the place where they are produced.

Multiple choice

How does the use of power looms impact handloom weavers?

  1. It reduces the demand for handloom products

  2. It leads to lower prices for handloom products

  3. It increases the cost of production for handloom weavers

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

The use of power looms has a negative impact on handloom weavers as it reduces the demand for handloom products, leads to lower prices, and increases the cost of production for handloom weavers.

Multiple choice

Which of the following factors is typically considered in production planning for pharmaceutical manufacturing?

  1. Product demand forecast

  2. Availability of raw materials

  3. Manufacturing lead times

  4. Regulatory requirements
Reveal answer Fill a bubble to check yourself
Correct answer
Explanation

Production planning in pharmaceutical manufacturing involves considering various factors such as product demand forecast, availability of raw materials, manufacturing lead times, and regulatory requirements to ensure efficient and compliant production.

Multiple choice

Which of the following is a key factor to consider when determining batch sizes in pharmaceutical manufacturing?

  1. Product demand

  2. Production capacity

  3. Equipment capabilities

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

Determining batch sizes in pharmaceutical manufacturing involves considering product demand, production capacity, and equipment capabilities to ensure efficient and effective production.

Multiple choice

What is the future of rye production?

  1. Increasing demand

  2. Decreasing demand

  3. Stable demand

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

The future of rye production is uncertain, as it depends on a number of factors, including climate change, demand, and competition from other crops.

Multiple choice

In what way is the Golden Ratio relevant to industrial maintenance?

  1. Designing efficient maintenance routes

  2. Balancing maintenance workload

  3. Improving equipment uptime

  4. Reducing maintenance costs
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Golden Ratio is applied to design efficient maintenance routes. By following a route that adheres to the Golden Ratio, maintenance technicians can minimize travel time and optimize their maintenance activities.

Multiple choice

What is the relationship between MTBF and MTTR in terms of availability?

  1. Availability = MTBF / (MTBF + MTTR)

  2. Availability = MTBF - MTTR

  3. Availability = MTBF * MTTR

  4. Availability = 1 - (MTBF / MTTR)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Availability is calculated as the ratio of MTBF to the sum of MTBF and MTTR. This formula highlights the inverse relationship between downtime and availability.

Multiple choice

What is the term used to describe the period of time between two consecutive peaks in a business cycle?

  1. Expansion

  2. Contraction

  3. Trough

  4. Business Cycle
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The business cycle is the period of time between two consecutive peaks in a business cycle.

Multiple choice

What is the term used to describe the period of time between two consecutive troughs in a business cycle?

  1. Expansion

  2. Contraction

  3. Trough

  4. Business Cycle
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The business cycle is the period of time between two consecutive troughs in a business cycle.

Multiple choice

What is the primary focus of productivity measurement in the service sector?

  1. Output per unit of labor

  2. Output per unit of capital

  3. Output per unit of total factor inputs

  4. Output per unit of time
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Productivity in the service sector is typically measured as the output produced per unit of total factor inputs, which include labor, capital, and other resources used in the production process.

Multiple choice

What was the target for foodgrain production by the end of the Seventh Five-Year Plan?

  1. 150 million tonnes

  2. 160 million tonnes

  3. 170 million tonnes

  4. 180 million tonnes
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The target for foodgrain production by the end of the Seventh Five-Year Plan was 170 million tonnes.

Multiple choice

Which of the following is a key factor to consider when developing a production schedule in the textile industry?

  1. Availability of raw materials

  2. Machine maintenance requirements

  3. Customer delivery deadlines

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

When developing a production schedule in the textile industry, it is essential to consider all of the above factors: availability of raw materials, machine maintenance requirements, and customer delivery deadlines. These factors impact the feasibility and efficiency of the production schedule.