Indian Economy Quiz 3

Marginal product refers to the extra output, return, or profit yielded per unit by advantages from production inputs. When Total Product rises at an increasing rate, marginal product also rises. When Total Product increases at a diminishing rate, marginal product declines.

RBI buys and sells government securities or bonds to control the money supply and interest rates. To increase the money supply, the RBI will purchase bonds from banks, which injects money into the banking system. It will sell bonds to reduce the money supply. Statutory Liquidity Ratio (SLR) is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities.

IFCI is not a credit rating agency. It is a development finance institution under the Ministry of Finance, Government of India. CARE has established itself as one of the leading credit rating agencies in India. CRISIL is an Indian analytical company providing ratings, research, and risk. It is a subsidiary of American company S&P Global. ICRA is an Indian independent and professional investment information and credit rating agency.

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.

Bank rate (discount rate) is the rate of interest which a Central Bank of Country charges on its loans and advances to the commercial banks.

Consumer sovereignty is the situation in an economy where the desires and needs of consumers control the output of producers.

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

The statement “Supply creates its own demand” is given by Prof JB Say. Say's Law was later simply summarized by economist John Maynard Keynes in his 1936 book, General Theory of Employment, Interest and Money.

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 Excise duty has been replaced by the Goods and Services Tax (GST) w.e.f. 1 July 2017.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.

Non-Plan Expenditure is money that's spent on sustaining the country like defence, postal deficit, subsidies, etc. and Plan Expenditure is the money that is spent on improving the country like the money spent on dams, roads, etc. The biggest items of Non-Plan Expenditure are interest payments and debt servicing, defence expenditure and subsidies.