Indian Economy Quiz 2

Brain drain is defined as the movement of highly skilled and educated people to a country where they can work in better conditions and earn more money.

Budget deficit is the difference between total expenditure and total receipts. The solution to a budget deficit for a government would be to increase taxes, find new avenues for revenue and reduce government spending. Fiscal deficit is calculated by subtracting the total income from the total expenditure.

The term merchant bank refers to a financial institution that conducts underwriting, loan services, financial advising, fundraising services and finances to international trade for large corporations and high-net-worth individuals (HWNIs). Unlike retail or commercial banks, merchant banks do not provide financial services to the general public.

The term 'secular stagnation' refers to a state of little or no economic growth – in other words, an environment where the economy is essentially stagnant.

Major items of India's exports are Petroleum Products, textiles and garments, gems and jewelry, chemicals and related products, Pharmaceutical Products and agricultural and allied products.

Producer surplus is the difference between how much a person would be willing to accept for given quantity of a good versus how much they can receive by selling the good at the market price. The difference or surplus amount is the benefit the producer receives for selling the good in the market.

Giffen goods are non-luxury items which generate higher demand when prices rise. Cheaper varieties of goods like bread, rice, potatoes, salt, etc. come under giffen goods. The demand curve for a Giffen good is upward rising.

A sunk cost is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with prospective costs, which are future costs that may be avoided if action is taken.

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.

The fourth Five-Year Plan was from 1969 to 1974. It targeted achieving self-reliance through progressive movement and achieving stable growth. During the implementation of this plan, then Prime Minister Indira Gandhi called the slogan 'GARIBI HATAO'.