Indian Economy Quiz 7

Once a crop is seeded, for example, farmers have limited ability to alter the quantities they put on the market. Therefore, in the short-term, market supply is relatively inelastic or unresponsive. Demand for most farm products is inelastic. People can consume only so much then they are satiated. Even if price drops they will not buy much more.

It is called Operations Research (OR). OR is an analytical method of problem-solving and decision-making that is useful in the management of organizations.

Fiscal policy refers to the use of the government budget to affect the economy. This includes government spending and levied taxes. In deficit financing, a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.

The euro (symbol €) is the single currency for 19 EU member countries, introduced in 2002 after more than 40 years of treaties and negotiations.

Full convertibility would mean the rupee exchange rate would be left to market factors without any regulatory intervention. There may be no limit on inflow or outflow of capital for various purposes including investments, remittances, or asset purchases/sales.

Household final consumption expenditure is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings.

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.

Taxes imposed by the state government are; Sales Tax and VAT, Professional Tax, Luxury Tax, Entertainment Tax, House tax, Motor Vehicles Tax, Tax on Vehicles Entering State, Tax on Agricultural Income, Tax on Land and Buildings and Tax on Mineral Rights.

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

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.