Indian Economy Quiz 4

Non-plan expenditure is what the government spends on the so-called non-productive areas, such as salaries, subsidies, loans and interest, while plan expenditure pertains to the money to be set aside for productive purposes, like various projects of ministries.

Economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced. A decrease in cost per unit of output enables an increase in scale.

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

Brain drain is defined as the movement of highly skilled and educated people to a country where they can work in better conditions and earn more money.

The system of issuing and monitoring of money in the market is known as minimum reserve ratio. Minimum reserves allow credit institutions to smooth out fluctuations in liquidity such as those caused by the demand for banknotes.

The different instruments of quantitative credit control technique are Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), the Bank Rate Policy, Selective Credit Control (SCC), Open Market Operations (OMOs), etc.

It is called Operations Research (OR). OR is an analytical method of problem-solving and decision-making that is useful in the management of organizations.

A prime cost is the total direct costs of production, including raw materials and labour. Indirect costs, such as utilities, manager salaries, and delivery costs, are not included in prime costs. The prime cost equation is equal to the cost of raw materials plus direct labour. All the prime costs are variable costs and they are directly attributable. They do not include indirect variable costs and any fixed costs.

When the government disinvests its shares to the extent of 4 to 5 percent to meet the deficit in the budget, this is termed deficit privatization or token privatization.

The Green accounting system is a type of accounting that attempts to factor environmental costs into the financial results of operations. The main objective of green accounting is to assist businesses to understand environmental goals are as important as financial goals.