Indian Economy Quiz 4

Taxes imposed by the state government are; Sales Tax and VAT, Professional Tax, Luxury Tax, Entertainment Tax, House tax, Motor Vehicles Tax, Tax on Vehicles Entering State, Tax on Agricultural Income, Tax on Land and Buildings and Tax on Mineral Rights.

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.

During the 1911 to 1921 decade, the population of India recorded a negative growth rate. The year 1921 is often known as the year of demographic divide because it is the only census year when there was a decrease in the growth of population.

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.

A non-resident Indian is classified as an individual who has gone out of India, or who stays outside India for employment or for carrying on business or any vocation.

From 1951 to 2017, the Indian economy was premised on the concept of planning. This was carried through the Five-Year Plans, developed, executed, and monitored by the Planning Commission. The Fourth Five-Year Plan (1969–1974) set before itself the two principal objectives – growth with stability and progress towards self-reliance.

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

In a capitalist society the prices of goods, services and labour are determined by supply and demand. If a lot of people want to buy a certain product its price will go up. Products that are mass produced usually have low prices.

The Fifth Five-Year Plan laid stress on employment, poverty alleviation (Garibi Hatao), and justice. The plan also focused on self-reliance in agricultural production and defence.

Complementary goods have a negative cross-price elasticity: as the price of one good increases, the demand for the second good decreases. Substitute goods have a positive cross-price elasticity: as the price of one good increases, the demand for the other good increases. Petrol and Cars is an example of Complementary goods.