Indian Economy and Finance Mock Test

A budgetary deficit is referred to as the situation in which the spending is more than the income. budgetary deficit is met by the net addition of the treasury bills issued by the RBI and drawing down of cash balances kept with the RBI. So when it is estimated, drawing down of cash balances is excluded.

Ceteris paribus is a Latin phrase that generally means “all other things being equal.” In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.

Consumer sovereignty is a theory that states the fact that consumers have the power to determine which products or services are actually produced in a given economy. It is an idea that places the customer's preferences in the centre of the product development funnel.

The estimate of National Income in India was, for the first time, prepared by Dada Bhai Naoroji in 1876 for the year 1867-68.

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.

Using Defence Strategies a seller or buyer protects his business or holdings from changing prices and takes action against it.

A mixed economy combines the characteristics of capitalism and socialism. Essentially, a country with this kind of economy comprises public and private sectors, wherein private enterprises aim for profit maximisation, while the Government sector works towards the welfare of the citizens.

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.

Efficient allocation of resources is achieved to greatest extent under Perfect competition. Efficient allocation of resources is a property of an efficient market whereby all goods and services are optimally distributed among buyers in an economy. It occurs when parties are able to use the accurate and readily available data reflected in the market to make decisions about how to utilize their resources.

Balance of trade is the difference between the value of a country's exports and the value of its imports. A favourable balance of trade means an excess of commodity exports over commodity imports. An unfavourable balance of trade is used to mean an excess of commodity imports over commodity exports.