Indian Economy Quiz 4

Efficient allocation of resources is achieved to greatest extent under Perfect competition. Efficient allocation of resources is a property of an efficient market whereby all goods and services are optimally distributed among buyers in an economy. It occurs when parties are able to use the accurate and readily available data reflected in the market to make decisions about how to utilize their resources.

The national income of a country is total productive income. It can be defined as the total market value of all final goods and services produced in the economy in a year.

The Planning Commission, agency of the government of India established in 1950 to oversee the country's economic and social development, chiefly through the formulation of five-year plans.

National income is the sum total value of all goods and services produced in the country during a period of one year.

A mixed economy combines the characteristics of capitalism and socialism. Essentially, a country with this kind of economy comprises public and private sectors, wherein private enterprises aim for profit maximisation, while the Government sector works towards the welfare of the citizens.

“Bad money tends to drive good money out of circulation when both are full legal tender.” This principle is known as Gresham's Law. Gresham's law was originally based on the composition of minted coins and the value of the precious metals used in them.

A budgetary deficit is referred to as the situation in which the spending is more than the income. budgetary deficit is met by the net addition of the treasury bills issued by the RBI and drawing down of cash balances kept with the RBI. So when it is estimated, drawing down of cash balances is excluded.

Lowering the tariff barriers has facilitated globalisation of international trade the most. In International Business Tariff Barriers are related taxes imposed by Governments to control Import Export of one or more products with a particular country.

National Bank for Agriculture and Rural Development (NABARD) is an apex regulatory body for overall regulation of regional rural banks and apex cooperative banks in India.

Disinvestment is when governments or organizations sell or liquidate assets or subsidiaries. Disinvestment in India is a policy of the Government of India, wherein the Government liquidates its assets in the Public sector Enterprises partially or fully.