Indian Economy Quiz 3

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.

A free good is a good that is not scarce, and therefore is available without limit. A free good is available in as great a quantity as desired with zero opportunity cost to society.

Net investment is the total amount of money that a company spends on capital assets, minus wear and tear (cost of the depreciation) of those assets.

Antyodaya Anna Yojana (AAY) is the sponsored scheme of Government of India to provide highly subsidised food to millions of the poorest families. The scheme was implemented in 2000. AAY scheme covers the poorest of the poor by supply of food and other important commodities for their daily needs.

Social Overhead Capital (SOC) is the basic facilities and services needed for the communities and societies. The SOC term can be used as the economic overhead facilities and Basic infrastructure facilities.

The term 'Hindu rate of growth' was coined by Professor Rajkrishna, an Indian economist, in 1978 to describe the slow growth and to explain it against the backdrop of socialistic economic policies. Hindu growth rate is related to GDP.

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.

Devaluation is the deliberate downward adjustment of the value of a country's money relative to another currency. Thus, devaluation reduces the cost of the country's exports. Also, it increases the cost of imports. So, domestic consumers are likely to purchase a domestic substitution. Thus it further strengthens the domestic business.

The Government of India (Ministry of Finance) has the sole right to mint coins. The responsibility for coinage vests with the Government of India in terms of the Coinage Act 1906. The Reserve Bank puts the coins into circulation on behalf of the Government of India.

The product or value-added method is a way of computing the national income of a country. This system is also known as output or inventory method.