Indian Economy Quiz 2

Per capita income is a measure of the amount of money earned per person in a nation or geographic region. It is calculated by dividing country's national income by its population.

Personal disposable income is equal to personal income minus direct taxes. It is the amount of money that an individual or household has to spend or save after income taxes (direct taxes) have been deducted.

Excise duty is a form of indirect tax that is levied by the Central Government of India for the production of goods. Excise duty has been replaced by the Goods and Services Tax (GST) w.e.f. 1 July 2017. Today, excise duty applies only on petroleum and liquor.

A mixed economy combines the characteristics of capitalism and socialism. Essentially, a country with this kind of economy comprises public and private sectors, wherein private enterprises aim for profit maximisation, while the Government sector works towards the welfare of the citizens.

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

Gandhiji believed that means Justify end. For Gandhi, the end is satya or truth which requires no justification and the means- ahimsa or non-violence must be justified not only with reference to the end but also in itself. Every act must be justified with reference to satya and ahimsa.

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 means the value of goods and services produced by a country during a financial year. Thus, it is the net result of all economic activities of any country during a period of one year and is valued in terms of money.

Purchasing power of money is said to be the main determinant of real wage. A real wage rate is a nominal wage rate divided by the price of a good and is a transparent measure of how much of the good an hour of work buys.

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.