Indian Economy Quiz 3

When the price level rises and the money wage rate is constant, the real wage rate decrease (as the purchasing power of their wages is lower) and employment increases. When the price level falls and the money wage rate is constant, the real wage rate increases and employment decreases.

Inflation allows borrowers to pay lenders back with money worth less than when it was originally borrowed, which benefits borrowers.

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.

Mahatma Gandhi developed the idea that “means justify the ends”. 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. It has effects on a country's international trade by alluring traders but, usually, internal prices remain unchanged.

Household final consumption expenditure is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings.

All of the goods which are scarce and limited in supply are called luxury goods. A luxury good is a good for which demand increases more than what is proportional as income rises.

A depository is an organization where the securities of an investor are held in electronic form.

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.

After the recent (2020) mergers of government banks, there are a total of 12 nationalized banks in India. They are: Punjab National Bank, Bank of Baroda, Bank of India, Central Bank of India, Canara Bank, Union Bank of India, Indian Overseas Bank, Punjab and Sind Bank, Indian Bank, UCO Bank, Bank of Maharashtra and State Bank Of India.