Indian Economy Quiz

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.

As per the Constitution of India, the Finance Commission is appointed every five years and consists of a chairman and four other members. The Finance Commission is constituted by the President under article 280, mainly to give its recommendations on distribution of tax revenues between the Union and the States.

Mahatma Gandhi first featured on currency notes in 1969. Mahatma Gandhi series of ₹100 notes has a picture of Indian Himalayan mountain ranges on its reverse which is of ecological and environmental significance.

National Income Estimates in India are prepared by National Statistical Office (NSO). NSO came into existence on 23rd May 2019 by a merger of NSSO (National Sample Survey Office) and CSO (Central Statistics Office). It is the statistics wing of the Ministry of Statistics and Program Implementation.

Special drawing rights (SDR) are known as paper gold. SDR are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). SDRs are units of account for the IMF and not a currency per se. They represent a claim to currency held by IMF member countries for which they may be exchanged.

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.

Consumption is the use of utility whereas production is creation of utility. In fact, their difference is not so fundamental. Both these are two different aspects of the same activity. For example, when a carpenter makes a chair, he performs an act of production by increasing the utility of log of wood.

Bilateral trade is the exchange of goods between two countries promoting trade and investment. The two countries will reduce or eliminate tariffs, import quotas, export restraints, and other trade barriers to encourage trade and investment.

The process of capital formation includes increasing savings, mobilization of savings, and investment of saving in such a way that will increase the stock of real capital.

National income is referred to as the total monetary value of all services and goods that are produced by a nation during a period of time.