Indian Economy Quiz 5

Gross National Product (GNP) is the total value of all finished goods and services produced by a country's citizens in a given financial year, irrespective of their location. GNP also measures the output generated by a country's businesses located domestically or abroad.

Tea and coffee are examples of Substitute goods. Substitutes present the consumer with alternative choices. If the price of one good falls, then demand for the substitute is likely to decrease.

Income tax is such which does not directly cause rise in price. An income tax is a tax imposed on individuals or entities in respect of the income or profits earned by them. Income tax generally is computed as the product of a tax rate times the taxable income.

The size of the landholdings is declining in India due to the shortage of land which has been used for industrial and other purposes. Many land goes to the private sector for setting up big projects. The main factors triggering land fragmentation are inheritance; population growth; land markets; and historical/ cultural background. Owning of land is a social status in India.

Population density is the number of individuals per unit geographic area, for example, number per square meter, per hectare, or per square km.

Goods and Services Tax, is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer.

The Reserve Bank has the sole authority to issue banknotes in India. The Currency notes of ₹2 and above denominations are banknotes and are issued with the signature of the Governor, Reserve Bank of India. The one rupee note is the only note bearing the signature of the Finance Secretary and not the Governor of the RBI.

The birth rate in a period is the total number of live births per 1,000 population divided by the length of the period in years.

A final good is a final product ready for sale that is used by the consumer to satisfy current wants or needs, unlike producer goods which are utilized to produce other goods. Final goods are available for consumption or can be used for capital formation. A refrigerator in a chemist shop is an example of a producer's good as it helps to satisfy human wants indirectly.

As per the Constitution of India, the Finance Commission is appointed every five years and consists of a chairman and four other members. The Finance Commission is constituted by the President under article 280, mainly to give its recommendations on distribution of tax revenues between the Union and the States.