Indian Economy and Finance Mock Test

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.

Gross domestic product is a monetary measure of the market value of all the final goods and services produced in a specific time period by countries.

Bull and bear are related to the Stock market. A 'bull' by definition is an investor who buys shares because they believe the market is going to rise; whereas a 'bear' will sell shares as they believe the market is going to turn negative.

When the price level rises and the money wage rate is constant, the real wage rate decrease (as the purchasing power of their wages is lower) and employment increases. When the price level falls and the money wage rate is constant, the real wage rate increases and employment decreases.

Capital investment is the procurement of money by a company in order to further its business goals and objectives. The term can also refer to a company's acquisition of long-term assets such as real estate, manufacturing plants and machinery.

Commission for Agricultural Costs and Prices (CACP) is a decentralised agency of the Government of India. It was established in 1965 as the Agricultural Prices Commission, and was given its present name in 1985.

Marginal product refers to the extra output, return, or profit yielded per unit by advantages from production inputs. When Total Product rises at an increasing rate, marginal product also rises. When Total Product increases at a diminishing rate, marginal product declines.

According to Keynes, employment can be increased by increasing demand and/or investment. demand depends on income and when income rises, demand also rises but not as much as income. A fall in aggregate demand causes a fall in real gross national product and employment.

Bank rate (discount rate) is the rate of interest which a Central Bank of Country charges on its loans and advances to the commercial banks.

The statement “Supply creates its own demand” is given by Prof JB Say. Say's Law was later simply summarized by economist John Maynard Keynes in his 1936 book, General Theory of Employment, Interest and Money.