Indian Economy and Finance Mock Test

The break-even point is the point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business.

Printing of currency notes in India is done on the basis of Minimum Reserve System (MRS). This system is applicable in India since 1956. Under the MRS, the RBI has to keep a minimum reserve of ₹200 crore comprising of gold coin and gold bullion and foreign currencies. Out of the total ₹200 crores, ₹115 crore should be in the form of gold coins or gold bullion and the rest in the form of foreign currencies.

The size of the landholdings is declining in India due to the shortage of land which has been used for industrial and other purposes. Many land goes to the private sector for setting up big projects. The main factors triggering land fragmentation are inheritance; population growth; land markets; and historical/ cultural background. Owning of land is a social status in India.

Usefulness is the benefit that is derived by consuming a commodity whereas utility is the want satisfying power of a commodity. A commodity having utility need not be useful.

Quasi-rent is the surplus which is received in a short period because of demand exceeding the supply by the man-made factors besides land.

Article 246 of the Indian Constitution, distributes legislative powers including taxation, between the Parliament of India and the State Legislature. Taxes of Central government under constitutionally established scheme of taxation are: taxes on income other than agricultural income; duties of customs; corporation tax; taxes on capital value of assets, taxes on capital of companies, etc.

The Fifth Five-Year Plan laid stress on employment, poverty alleviation (Garibi Hatao), and justice. The plan also focused on self-reliance in agricultural production and defence.

The fourth Five-Year Plan was from 1969 to 1974. It targeted achieving self-reliance through progressive movement and achieving stable growth. During the implementation of this plan, then Prime Minister Indira Gandhi called the slogan 'GARIBI HATAO'.

Brain drain is defined as the movement of highly skilled and educated people to a country where they can work in better conditions and earn more money.

High infant mortality rate, high death rate and high birth rate, along with low life expectancy rate are some characteristics of the population of a Developing country.