Indian Economy and Finance Mock Test

The Planning Commission, agency of the government of India established in 1950 to oversee the country's economic and social development, chiefly through the formulation of five-year plans.

Monopolistic competition characterizes an industry in which many firms offer products or services that are similar substitutes. Excess capacity is more defined under monopolistic competition due to the nature of the market structure.

From 1951 to 2017, the Indian economy was premised on the concept of planning. This was carried through the Five-Year Plans, developed, executed, and monitored by the Planning Commission. The Fourth Five-Year Plan (1969–1974) set before itself the two principal objectives – growth with stability and progress towards self-reliance.

Household final consumption expenditure is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings.

The Green accounting system is a type of accounting that attempts to factor environmental costs into the financial results of operations. The main objective of green accounting is to assist businesses to understand environmental goals are as important as financial goals.

Goods and Services Tax (GST) is an indirect tax used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.

The Insurance Regulatory and Development Authority of India (IRDA) is a regulatory body under the jurisdiction of Ministry of Finance, Government of India and is tasked with regulating and licensing the insurance and re-insurance industries in India.

National income means the value of goods and services produced by a country during a financial year. Thus, it is the net result of all economic activities of any country during a period of one year and is valued in terms of money.

Price theory is a microeconomic principle that uses the concept of supply and demand to determine the appropriate price point for a given good or service.

Production function is the functional relationship between inputs and output in a given state of technology. Q=f(L,K) [where Q is output, L is Labour, K is Capital]