Indian Economy and Finance Mock Test

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.

Higher interest rates mean higher borrowing costs, people will eventually start spending less and get better returns on their savings. The demand for goods and services will then drop, which will cause inflation to fall.

The break-even point (BEP) is the point at which total cost and total revenue are equal, i.e. “even”. In investing, the break-even point is said to be achieved when the market price of an asset is the same as its original cost.

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 Reserve Bank has the sole authority to issue banknotes in India. The Currency notes of ₹2 and above denominations are banknotes and are issued with the signature of the Governor, Reserve Bank of India. The one rupee note is the only note bearing the signature of the Finance Secretary and not the Governor of the RBI.

Personal disposable income is equal to personal income minus direct taxes. It is the amount of money that an individual or household has to spend or save after income taxes (direct taxes) have been deducted.

Social cost is the sum of private and external costs. It is generally not borne by an individual. It may be borne by the entire society, city or even country. Social costs are not calculated whenever a seller sells any product or item to the buyer. This cost is added up from the use of that product.

Entrepreneurship is an individual's ability to turn ideas into action. It includes creativity, innovation and risk-taking, as well as the ability to plan and manage projects in order to achieve objectives. Entrepreneurs have the ability to organize the process of production.

Depository services are services in which the securities of investors are kept in an electronic form just as bank keeps all your cash in its account and provides all services related to the transaction of cash, similarly, we help you out in performing the service through a demat account.

A free good is a good that is not scarce, and therefore is available without limit. A free good is available in as great a quantity as desired with zero opportunity cost to society.