Indian Economy Quiz 6

Excise duty is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). Excise duty on a commodity is payable with reference to its production.

Mahatma Gandhi developed the idea that “means justify the ends”. For Gandhi, the end is satya or truth which requires no justification and the means- ahimsa or non-violence must be justified not only with reference to the end but also in itself. Every act must be justified with reference to satya and ahimsa.

The main advantage of devaluation is to make the exports of a country or currency area more competitive, as they become cheaper to purchase as a result. This can increase external demand and improvement in the balance of payment.

Stamp duty is levied by the Union and appropriated and planned by states. The central government requires stamp duty to be paid on several classes of transaction documents, primarily focused on securities, under the Indian Stamp Act, 1899.

In economics, capital flight is a phenomenon characterized by large outflows of assets and/or capital from a country due to some events, resulting in negative economic consequences to that country.

In economics, Gresham's law is a monetary principle stating that “bad money drives out good”. For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation.

Usefulness is the benefit that is derived by consuming a commodity whereas utility is the want satisfying power of a commodity. A commodity having utility need not be useful.

When buying and selling of goods and services takes place within the geographical boundaries of a country, it is referred to as internal trade or domestic trade.

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.

The term 'secular stagnation' refers to a state of little or no economic growth – in other words, an environment where the economy is essentially stagnant.