Indian Economy GK Questions with Answers

Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.

The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.

UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.

The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.

GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.

Hot money is foreign capital that flows in quickly to earn short-term returns and can leave just as quickly, and in India this describes portfolio investment in shares and bonds.

Since independence, and especially since the reforms of 1991, the services sector has grown faster than the rest of the economy and now produces more than half of India's gross value added.

Amartya Sen received the 1998 Nobel Memorial Prize in Economic Sciences "for his contributions to welfare economics". Sen worked on social choice theory, on how to measure poverty and inequality, and on the causes of famine.

GST is charged only on the value added at each stage, with credit for tax already paid, so it is not levied on the gross value again and again.

NIIF and the National Investment Fund are two different bodies with different purposes. The National Investment Fund was created in 2005 to hold the money the government raised from disinvestment of public sector enterprises, and it is part of the Public Account of India.

Under MFN, a favour given to one trading partner must be given to all WTO members. The MFN rule is Article I of the General Agreement on Tariffs and Trade (GATT), and it also appears in the services and intellectual property agreements of the WTO.

The RBI uses all-India CPI (Combined) inflation as the measure for its monetary policy. For a long time the Wholesale Price Index was India's headline inflation measure.

Copyright arises automatically the moment an original work is created and fixed in some form. Under the Copyright Act, 1957 and the Berne Convention, which India has joined, an author of a literary, dramatic, musical or artistic work, a film or a sound recording gets copyright without any formality.

Capital deepening means the stock of capital grows faster than the labour force, so each worker has more machines and tools to work with.

Classical economists held that the economy always tends back to full employment, so any unemployment is short-lived. The classical theory rests on Say's Law, that supply creates its own demand, so there can be no general overproduction.

In the 14th Finance Commission's formula for sharing central taxes among the States, income distance carried a weight of 50 percent, the highest of all the criteria.

TRIPS stands for the Agreement on Trade-Related Aspects of Intellectual Property Rights. TRIPS was negotiated in the Uruguay Round and came into force with the World Trade Organization on 1 January 1995, binding every WTO member.

Money from selling the government's stake in public sector enterprises reduces its assets, so it is a capital receipt, not a revenue receipt.

The National Mission on Edible Oils - Oil Palm (NMEO-OP), approved in August 2021, gives special focus to these two areas because their high rainfall and humid climate suit oil palm.

RCEP is a free trade agreement built around ASEAN and its FTA partners, and India chose to stay out of it.