Indian Economy Quiz 2

The terms 'microeconomics' and 'macroeconomics' were first coined by a Norwegian economist, Ragnar Frisch.

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.

Revaluation is an official rise of the value of the currency in relation to a foreign currency in a fixed exchange rate system. Revaluation is the opposite of devaluation, which is a downward adjustment of a country's official exchange rate.

In India, the Minimum Wages Act was enacted in 1948. It is an Act of Parliament concerning Indian labour law that sets the minimum wages that must be paid to skilled and unskilled labours. The Act gives both the Central government and State government jurisdiction in fixing wages.

National income is the accumulated money value of all final goods and services produced in a country during one financial year. Winning a lottery is not included in the national income because it does not add to current flow of goods and services.

Net national product (NNP) is gross national product (GNP), the total value of finished goods and services produced by a country's citizens overseas and domestically, minus depreciation.

Three Important Methods for Measuring National Income are - Income Method, Product/ Value Added Method and Expenditure Method.

Bull and bear are related to the Stock market. The share broker who sells shares in the apprehension of falling prices of shares is called Bear. A 'bull' by definition is an investor who buys shares because they believe the market is going to rise; whereas a 'bear' will sell shares as they believe the market is going to turn negative.

Natural rubber is cultivated in 16 states in India on a commercial scale. With over 600,000 hectares, Kerala tops rubber cultivation, followed by Tripura with over 85,038 hectares under plantation. Other major natural rubber producers are Karnataka, Tamil Nadu, Assam and other northeastern states.

The primary market is the part of the capital market that deals with the issuance and sale of equity-backed securities to investors directly by the issuer. Investors buy securities that were never traded before.