Indian Economy Quiz 5

Per capita income is a measure of the amount of money earned per person in a nation or geographic region. It is calculated by dividing country's national income by its population.

The services sector is the largest sector of India. Gross Value Added (GVA) at current prices for the services sector is estimated at 96.54 lakh crore INR in 2020-21. The services sector accounts for 53.89% of total India's GVA of 179.15 lakh crore Indian rupees. With GVA of ₹46.44 lakh crore, the Industry sector contributes 25.92%. While Agriculture and allied sector share 20.19%.

Consumer sovereignty is a theory that states the fact that consumers have the power to determine which products or services are actually produced in a given economy. It is an idea that places the customer's preferences in the centre of the product development funnel.

Inflation is a measure of the rate of rising prices of goods and services in an economy. Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.

Article 246 of the Indian Constitution, distributes legislative powers including taxation, between the Parliament of India and the State Legislature. Taxes of Central government under constitutionally established scheme of taxation are: taxes on income other than agricultural income; duties of customs; corporation tax; taxes on capital value of assets, taxes on capital of companies, etc.

Companies issue stocks and bonds (securities) to the public to raise funds. A company decides to sell stock when it needs long-term access to capital.

Statutory Liquidity Ratio (SLR) is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities (or any bond). It is basically the reserve requirement that banks are expected to keep before offering credit to customers.

Capital output ratio is the amount of capital needed to produce one unit of output.

Saving is closely related to physical investment, in that the former provides a source of funds for the latter. Consumers decide to save more, and spend less, the fall in demand would lead to an increase in business inventories. The change in inventories brings savings and investment into balance without any intention by the business to increase investment.

Foreign indirect investment (FII) involves corporations, financial institutions, and private investors that purchase shares in foreign companies that trade on a foreign stock exchange.