Indian Economy and Finance Mock Test

In economics, the marginal product of labour is the change in output that results from employing an added unit of labour. It is a feature of the production function, and depends on the amounts of physical capital and labour already in use.

Saving is closely related to physical investment, in that the former provides a source of funds for the latter. Consumers decide to save more, and spend less, the fall in demand would lead to an increase in business inventories. The change in inventories brings savings and investment into balance without any intention by the business to increase investment.

During periods of rising prices, debtors gain and creditors lose. A basic rule of inflation is that it causes the value of a currency to decline over time. In other words, cash now is worth more than cash in the future. Thus, inflation lets debtors pay lenders (creditors) back with money that is worth less than it was when they originally borrowed it.

The Report of Vijay Kelkar Committee (Task Force on direct taxes 2002) relates to Direct Tax Reforms. The main recommendations of this committee related to the income tax exemption limit, abolition of wealth tax, etc.

When the countries of the South or developing countries cooperate in various fields, it is known as South-South Cooperation or Dialogue. Thus, the term South-South Cooperation means the process of cooperation among the developing countries in the economic field and other areas.

A fiscal deficit is a difference between total expenditure and total receipts. In other words, it is a shortfall in a government's income compared with its spending. The government that has a fiscal deficit is spending beyond its means.

It refers to the right or ability of an industrial unit to withdraw from or leave an industry or in other words to close down.

The law of diminishing marginal returns is a theory in economics that predicts that after some optimal level of capacity is reached, adding an additional factor of production will actually result in smaller increases in output. According to modern thinking, the law of diminishing returns applies to all fields of production.

The Damodar Valley Corporation is the first Public Sector Corporation of independent India. The Corporation came into existence on 7th July, 1948 as the first multipurpose river valley project of independent India. It is an Indian governmental organization which operates in the Damodar River area of West Bengal and Jharkhand states of India.

Mutual funds and stock markets are regulated by the Securities and Exchange Board of India (SEBI). SEBI is additionally the apex regulator of capital markets and its intermediaries. SEBI is under the jurisdiction of Ministry of Finance, Government of India. It was established on 12 April 1992 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.