Indian Economy Quiz 6

In economics, the marginal product of labour is the change in output that results from employing an added unit of labour. It is a feature of the production function, and depends on the amounts of physical capital and labour already in use.

National income is the accumulated money value of all final goods and services produced in a country during one financial year. Winning a lottery is not included in the national income because it does not add to current flow of goods and services.

The highest body which approves the Five Year Plan in India was the National Development Council. Five-Year Plans, developed, executed, and monitored by the Planning Commission (1951-2014) and the NITI Aayog (2015-2017). On 1 January 2015, a Cabinet resolution was passed to replace the Planning Commission with the newly formed NITI Aayog (National Institution for Transforming India).

An indirect tax is charged on producers of goods and services and is paid by the consumer indirectly. It is not directly levied on the income of a person. Instead, he/she has to pay the tax along with the price of goods or services bought by the seller. The person paying the tax to the government and the person bearing the liability to pay the tax are thus, two different people.

The statement “Supply creates its own demand” is given by Prof JB Say. Say's Law was later simply summarized by economist John Maynard Keynes in his 1936 book, General Theory of Employment, Interest and Money.

A prime cost is the total direct costs of production, including raw materials and labour. Indirect costs, such as utilities, manager salaries, and delivery costs, are not included in prime costs. The prime cost equation is equal to the cost of raw materials plus direct labour. All the prime costs are variable costs and they are directly attributable. They do not include indirect variable costs and any fixed costs.

In economics, equilibrium is a situation in which economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change. In equilibrium, a perfectly competitive firm will equate marginal revenue with marginal cost.

Exceptional or abnormal demand is a demand pattern which does not abide with the laws of demand. Its curve is one which slopes down from right to left or in other words, which goes up from left to right, showing that more is demanded at a higher price than at a lower price.

Printing of currency notes in India is done on the basis of Minimum Reserve System (MRS). This system is applicable in India since 1956. Under the MRS, the RBI has to keep a minimum reserve of ₹200 crore comprising of gold coin and gold bullion and foreign currencies. Out of the total ₹200 crores, ₹115 crore should be in the form of gold coins or gold bullion and the rest in the form of foreign currencies.

According to the Suresh Tendulkar Committee, the Below Poverty Line (BPL) number is now 38%. Suresh Tendulkar Committee was constituted in the year 2009.