Indian Economy Quiz 7

The Net National Product (NNP) at Factor Cost is the net money value of all goods and services produced by ordinary citizens of a country. It includes income earned by Indian citizens, whether they live in India or abroad. It is calculated net of national income, which implies it excludes depreciation.

“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.

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.

J.B. Say propounded the market law. Say's Law of Markets is theory from classical economics arguing that the ability to purchase something depends on the ability to produce and thereby generate income. Say reasoned that to have the means to buy, a buyer must first have produced something to sell.

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.

The full form of IDBI is Industrial Development Bank of India. It was established in 1964 by an act to provide credit and other financial facilities for the development of the fledgling Indian industry.

The law of demand states that the quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded.

In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country's economy. The long-term fiscal policy proposes to maintain the stability of the ratio of tax revenue to GDP.

The Centre earns money through several taxes, such as corporate tax, income tax, goods and services tax, Union excise duty and customs duty. A part of the taxes is shared with state governments. The taxes, which are not shared with states include a surcharge on income tax, some cesses like education and road.

The Fifth Five-Year Plan laid stress on employment, poverty alleviation (Garibi Hatao), and justice. The plan also focused on self-reliance in agricultural production and defence.