Indian Economy Quiz

Economists and statisticians use several methods to track economic growth. The most well-known and frequently tracked is the gross domestic product (GDP).

Bank rate is the rate charged by the central bank (RBI) for lending funds to commercial banks. Lower bank rates can help to expand the economy by lowering the cost of funds for borrowers, and higher bank rates help to reign in the economy when inflation is higher than desired.

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.

When the quantity of supply of goods matches the demand for goods, it is called the equilibrium price.

Population growth rate is affected by birth rates, death rates, immigration, and emigration. A high growth rate of population is characterised by high birth and low death rates.

Complementary goods have a negative cross-price elasticity: as the price of one good increases, the demand for the second good decreases. Substitute goods have a positive cross-price elasticity: as the price of one good increases, the demand for the other good increases. Petrol and Cars is an example of Complementary goods.

Stagflation is an economic condition that's caused by a combination of slow economic growth, high unemployment, and rising prices.

Article 269 of the Indian Constitution deals with Taxes levied and collected by the Union but assigned to the States.

Through the establishment of village industries, Mahatma Gandhi strives to bridge economic inequalities. Gandhiji conceived Khadi Programme as a key to solve the economic problems of the country. Gandhi had commented about khadi “It connotes the beginning of economic freedom and equality of all in the country.”

During the 1911 to 1921 decade, the population of India recorded a negative growth rate. The year 1921 is often known as the year of demographic divide because it is the only census year when there was a decrease in the growth of population.