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
  1. filthy, output, increasing

  2. slated, demand, easy

  3. untimely, influx, natural

  4. proved, productivity, enormous

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Filthy and untimely can't fit in the 1st blank. So, (1) and (3) are ruled out. 'Slated' is itself a negative word, so, 'slated wrong' would not make sense. Only 'proved' fits in 1st blank. Moreover, considering the ideals of Karl Marx productivity and enormous fit well in 2nd and 3rd blanks.

Multiple choice
  1. high variety and low volume

  2. mid variety and mid volume

  3. low variety and mid volume

  4. mid variety and high volume

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

FMS occupies the middle ground of the volume-variety matrix - moderate volumes with moderate variety. High-volume low-variety uses dedicated lines, while low-volume high-variety uses manual job shops. FMS bridges this gap with automated flexibility.

Multiple choice
  1. size of the business

  2. capital involved in business

  3. production of such business

  4. All of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Scale of business determines the type of industry or size of the industry, choice of business activity, etc.

Multiple choice
  1. active

  2. efficient

  3. Both 1 and 2

  4. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A related doctrine is the insurance law doctrine of efficient proximate cause. Under this rule, in order to determine whether a loss resulted from a cause covered under an insurance policy, a court looks for the predominant cause which sets into motion the chain of events producing the loss, which may not necessarily be the last event that immediately preceded the loss. Many insurers have attempted to contract around efficient proximate cause through the use of "anti-concurrent causation" (ACC) clauses, under which if a covered cause and a non-covered cause join together to cause a loss, the loss is not covered.

Multiple choice
  1. (a) - 1

  2. (b) - 3

  3. (c) - 4

  4. None of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Introduction is the Stage 1 of product life cycle. Stage 1 is where the product is launched. A product launch is always risky. You never know how the market will receive the product. Characteristics of introductory stages of product life cycle are

a. Higher investment and lesser profits

b. Minimal Competition

c. Company tries to induce acceptance and gains initial distribution

d. Company needs promotions targeted towards customers to increase awareness and demand for the product

e. Company needs promotions targeted towards channel to increase confidence in the product  

Multiple choice
  1. 2 month

  2. 3 month

  3. 6 month

  4. 12 month

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Section 106 of the Transfer of Property Act 1882 deals with the duration of leases and states that in the absence of a contract, or local law or usage to the contrary, a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, terminable on the part of either lessor or lessee, by six month notice and a lease of immovable property for any other purpose shall be deemed to be lease from month to month, terminable, on the part of either lessor or lessee by 15 day notice.

Multiple choice
  1. Functional changes

  2. Quality changes

  3. Price changes

  4. Environmental impact changes

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This question references 'the above' without context, making it ambiguous. Based on adjacent questions about product modification, functional changes, quality changes, and environmental impact changes are all ways to modify a product, while price changes are a separate marketing strategy.

Multiple choice
  1. Lateral

  2. Related

  3. Vertical

  4. Horizontal

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Product diversification has standard types: lateral (new products unrelated to current business), vertical (integrating backward/forward in supply chain), and horizontal (similar products at same production level). 'Related' diversification describes the relationship between new and existing products but is not a type - it's a characteristic. Therefore, 'Related' is NOT a type of product diversification.

Multiple choice

Which of the following titles would be the appropriate title for the passage?

Many of you have long experienced in your manufacturing operations the advantages of substantial, well-contrived, and well-executed machinery. 

Experience has also shown you the difference of the results between mechanism which is neat, clean, well arranged, and always in a high state of repair; and that which is allowed to be dirty, in disorder, and without the means of preventing unnecessary friction, and which therefore becomes, and works, much out of repair. In the first case the whole economy and management are good, every operation proceeds with ease, order, and success. 
In the last, the reverse must follow, and dissatisfaction among all the agents and instrument interested or occupied in the general process, which cannot fail to create great loss. 
If, then, due care as to the state of your inanimate machines can produce such beneficial results, what may not be expected if you devote equal attention to your vital machines, which are far more wonderfully constructed? 
When you shall acquire a right knowledge of these, of their curious mechanism, of their self-adjusting powers; when the proper main spring shall be applied to their various movements — you will become conscious of their real value, and you will readily be induced to turn your thoughts more frequently from your inanimate to your living machines; and you will discover that the latter may be easily trained and directed to procure a large increase of pecuniary gain, while you may also derive from them a high and substantial satisfaction.

  1. A new view of organization.

  2. New trends to be healthy.

  3. An insight into effective mechanisms.

  4. A new view of society.

  5. Mechanization and it's resources.

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In light of above explanation, (4) would be the appropriate title and hence, is the answer.

Multiple choice
  1. agricultural products

  2. dairy products

  3. consumer goods

  4. none of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

AGMARK is a certification mark used in India to assure the quality and grade of agricultural products. It stands for 'Agricultural Mark' and is governed by the Directorate of Marketing and Inspection. The mark guarantees that products meet specific standards for size, color, and quality.