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SSC CGL Economy One Liners

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SSC CGL Economy One Liners

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SSC Complete Study Material on “ SSC CGL Economy One Liners” is the comprehensive collections of important topics which represent an unprecedented level of coverage of the Economy and will be helpful in the preparation of SSC and all other Competitive exams.

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SSC CGL Economy – Points:

  • On the administered price of ATF no subsidy is given.

  • ATF stands for Aviation Turbine Fuel.

  • When there is an increase in interest in an economy then there is an increase in saving, decrease in the loan, an increase in production cost.

  • Decreases in the interest level of a country is affected by FDI.

  • Location of capital works has the least possibility of globalization.

  • Quantum restriction, the establishment of a standard of labour in many success Tipuring restrictions on goods quality are not the non-customs duty obstacles in world trade.

  • To raise the bank loan, the decline in the saving rate, increased demand for consumer products are the outcomes of a decrease in prime lending rate.

  • If people’s income of a country is denoted in a curved line space that it has increased, then it denotes that dissimilarity is decreasing in income distribution.

  • Multiplier process in economic theory is conventionally taken to mean that the income of an economy grows on account of an initial investment.

  • The world bank normally gives medium and long term loans.

  • The International Monetary Fund (IMF) came into existence with the Brettonwood conference.

  • Structural adjustment loans are given by the world bank is meant for encouraging capital-intensive industries.

  • A financial instrument is called ‘primary security’ if it represents the liability of the government of India.

  • Service cooperatives are marketing societies.

  • Out put at break-even point is that output at which the produced is able to recover total costs.

  • India’s share in world trade since 1950, has shown a mixed trend.

  • Through trusteeship theory, Gandhi Ji strives to bridge the economic inequalities.

  • Operating surplus arises in the enterprise sector.

  • The most important of the non-tariff barriers are health regulations.

  • Investment is equal to the gross total of all types of physical capital assets.

SSC CGL Economy – Points:

  • The Tarapore committee recommended that before capital account was made convertible the rate of inflation should be brought down for three years to within 3.5%.

  • NABARD’s Primary role is to provide term loans to state co-operative banks and to assist state government for share capital contribution and to act as re-finance institutions.

  • BIFR was established under the Sick Industrial Companies Act.

  • The theory of distribution relates to equality in the distribution of income and wealth.

  • If an industry is characterised by economies of scale then long run unit costs of production decreases as the quantity the firm produces increases.

  • Say’s the law of market holds that supply creates its own demand.

  • Movement along the same demand curve is known as increase and decrease of Demand.

  • USP in the marketing field is Universal standards of production.

  • 80,000 investment in the shares of debentures of notified companies like the ICICI, the IDBI etc. that will entitle a rebate in income tax up to 20% of the amount invested.

  • Finance commission recommends the principles governing the grant –in aid of the revenues of the states out of the Consolidated Fund of India.

  • RBI does not transact the business of Jammu and Kashmir state governments.

  • A tax is characterized by horizontal equity if its liability is proportional to the income of tax payers.

  • A Leasing company provide Machinery and capital equipment on hire.

  • When too much money is chasing too few goods the situation is inflation.

  • When there is a change in demand leading to a shift of the demand curve to the right, at the same price as before, the quantity demanded will increase.

  • The income elasticity of demand being greater than one, the commodity must be a luxury.

  • ‘Marginal efficiency of capital’ is the expected rate of return on new investment.

  • The buoyancy of a tax is defined as an increase in tax revenue/increase in the tax base.

  • IDBI bank was recently converted to a universal Bank.

  • The pound sterling is costliest among French Franc, Swiss Franc, Euro, Pound sterling.

SSC CGL Economy – Points:

  • Andhra Pradesh has benefitted the most with the Asian Development Bank (ADB) loans for improvement of National Highways.

  • Raising funds for entrepreneurs is not a role assigned to science and Technology Entrep-reneurship parks.

  • The lion is the animal on the insignia of the RBI.

  • The measure of a worker’s real wage is the change in his productivity over a given time.

  • The main source of revenue for a State Government in India is Excise duty.

  • Average Revenue means the profit realized from the marginal unit sold.

  • To achieve high rates of growth of national output, the economy has to increase the rate of investment and reduce the capital-output ratio.

  • The proceeds of income tax go to Central Government.

  • National income refers to the money value of capital goods produced by a country during a year.

  • A Scheduled Bank is one which is included in the II Schedule of Reserve Bank of India Act.

  • Economic rent refers to the payment made for the use of labour.

  • Mahatma Gandhi series of currency notes of Rs.5 issued by the RBI has “ecology” depicted on it.

  • The U.K. under Mrs. Margaret Thatcher started privatization of state-owned enterprises as a major state policy.

  • The purpose of the India Brand Equity Fund was to make “India in India” a label of quantity.

  • Under the minimum reserve system, the Reserve Bank of India as the sole authorityof note issue is required to maintain assets worth not less than 200 crores of rupees.

  • Service tax collected by the union is not mandated to assign to the states.

  • Devaluation usually causes internal prices to remain unchanged.

  • Devaluation” means official lowering of the value of a country’s currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency.

  • One of the objectives of the Industrial Licensing Policy in India is to ensure the free flow of foreign capital in Indian industries.

  • Currency notes of Rs. 2 denomination and above are liabilities of Reserve Bank of India.

SSC CGL Economy – Points:

  • Interest Payment is the biggest head of non-plan expenditure of Government of India.

  • When aggregate supply exceeds aggregate demand inventories accumulate.

  • Resources transferred from the Government of India to States are termed ‘statutory’ if they are made on the recommendations of the Finance Commission.

  • Open Market operations refer to purchase and sale of Government securities by the R.B.I.

  • Damodar Valley Corporation is the first Public sector Corporation of Independent India.

  • The corporation operates both thermal power stations and hydel power stations under the Ministry of Power, Govt of India. DVC is headquartered in the city of Kolkata.

  • Investment in the Automobile industry is not considered as infrastructure investment.

  • According to the Keynesian theory of income determination, at full employment, a fall in aggregate demand causes a fall in the price of output and resources.

  • Both Bonds and stockholders are the creditors of a corporation.

  • A country has sufficient international liquidity if it can cover any balance of payment deficit with enough of gold and/or convertible currency.

  • Equilibrium price means the price determined by demand and supply.

  • When marginal utility is zero, the total utility will be Maximum.

  • Land Revenue is collected and utilized by the State Governments.

  • Five percent (5%) of our exports in 2002-2003 was from Information Technology.

  • SDR unit of valuation is known as “Paper Gold”.

  • The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries official reserves.

  • Trade in securities is known as the open market operation of the RBI.

  • CRISIL, ICRA, IFCI are credit rating agencies.

  • The Reserve Bank of India functions as a controller of credit in India.

  • The ratio of a bank’s cash holdings to its total deposit liabilities is called the Cash Reserve Ratio.

SSC CGL Economy – Points:

  • Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits, which commercial banks have to hold as reserves either in cash or as deposits with the central bank.

  • Investment is equal to the gross total of all types of physical capital assets.

  • In India, in the year 1994 Rupee become a freely convertible currency on the current account.

  • In business raw materials, components, work in progress and finished goods are jointly regarded as Inventory.

  • The difference between the GNP and the NNP is equal to the capital depreciation.

  • Deficit financing is an instrument of fiscal policy.

  • The Government resorts to the devaluation of its currency in order to promote exports.

  • A closed economy is one which does not trade with other countries.

  • Bank rate is the rate of interest at which commercial banks borrow money from R.B.I

  • Operating Surplus arises in the Government Sector.

  • Decrease in the money supply can be used for checking inflation temporarily.

  • Central Excise Department is responsible to collect the service tax.

  • The basic regulatory authority for mutual funds and stock markets lies with the SEBI.

  • Secular stagnation refers to Recurring booms and depression in the economy.

  • Interest on public debt is part of Transfer payments by the government.

  • HPCL is a Navratna Company.

  • The major aim of devaluation is to encourage exports.

  • The long term fiscal policy proposes to maintain the stability of Indirect tax rates.

  • Main bearers of the burden of indirect tax are consumers.

  • A commercial bank law creates credit only if it has the permission of Reserve Bank of India.

SSC CGL Economy – Points:

  • Investment and savings are kept equal through a change in the level of consumption.

  • Per capita income of citizens is not required while computing the Gross National Product (GNP).

  • Gross National Product is the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments.

  • Consumer’s sovereignty means consumer’s expenditures influence the allocation of resources.

  • The Employment Guarantee Scheme, which is now an important component of the NCMP was first introduced in Maharashtra State.

  • The break-even point is where average revenue equals average cost.

  • Rate of interest is determined by Liquidity Preference.

  • Current payments on foreign loans are not included in the private income arising in a country.

  • Guaranteed maximum prices have not been a component of the agricultural strategy that brought about the Green Revolution.

  • NIFTY is associated with NSE Index.

  • The NIFTY 50 index is the National Stock Exchange of India’s benchmark stock market index for the Indian equity market.

  • One of the essential conditions of Monopolistic competition is many buyers but one seller.

  • Gresham’s law is related to the circulation of money.

  • Gresham’s law is a monetary principle stating that “bad money drives out good”.

  • In a liassez-fairy economy, the Government does not interfere in the free functioning of demand and supply forces in the market.

  • In calculating national income, the income of a watchman is included.

  • Kaldor had suggested a tax on expenditure.

  • Bank rate is the rate at which the central bank re-discounts the commercial bills brought to it by the commercial banks.

  • The annual record for all the monetary transactions of a country with other countries of the world is known as balance of payments.

  • Excise tax, Custom duty and House tax belong to central tax.

SSC CGL Economy – Points:

  • According to AT Kearney Inc , U.S.A and China is the hottest destination for foreign direct investment.

  • Goa has the highest NSDP per capita among 33 Indian states and union territories. NSDP per capita of Goa is estimated at 224,138 Indian rupees in 2013-14.

  • RBINET is the name of the electronic communication network of the Reserve Bank of India.

  • A country’s balance of trade is unfavourable when imports exceed exports.

  • The data collection for national income estimation is conducted in India by The NSSO (National Sample Survey Organisation).

  • In India the largest public undertaking is IOC(Indian Oil Corporation).

  • Indian Oil Corporation (Indian Oil) is India’s Largest Commercial Enterprise, with a net profit of 103.99 billion (US$1.5 billion) for the financial year 2015-16.

  • Punjab National Bank was honoured with the Golden Peacock Award in 2002 for excellence in corporate excellence.

  • Excise duty on a commodity is payable with reference to its production.

  • Green revolution was most successful in Punjab, Haryana and UP.

  • Dr Norman Borlaug is called the father of the Green Revolution. It was launched in Kharif of 1966-67 with an objective to attain self-sufficiency in food by 1970-71.

  • Amatrya Sen was awarded the Nobel Prize for his contribution to Welfare Economics.

  • Long term government bonds, National Savings certificates and Provident fund are viewed as national debt.

  • Blue Revolution is related to fish production.

  • In India the population growth rate is high because death rate has fallen but birth rate remains high.

  • Scheduled Banks has to be registered with RBI.

  • The scheduled commercial banks are those banks which are included in the second schedule of RBI Act 1934.

  • NSSO collects data for unorganised sector.

  • National Sample Survey Office (NSSO) headed by a Director General is responsible for the conduct of large scale sample surveys in diverse fields.

  • In the law of demand, the statement “other things remain constant” means income of consumer should not change, price of other goods should not change, taste of consumer should not change.

SSC CGL Economy – Points:

  • A firm is in equilibrium when its marginal cost equals the marginal revenue.

  • The World Trade Organisation(WTO) was known as GATT.

  • Given the money wages, if the price level in an economy increases, then the real wages will become flexible.

  • The difference between visible exports and visible imports is defined as Balance of trade.

  • Value Added Tax is a simple, transparent, and easy to pay tax imposed on consumers.

  • The outcome of devaluation of currency is increased exports and improvement in balance of payment.

  • The term ‘Green GNP’ emphasises increase in per capita income.

  • An agency for safe keeping of securities is referred to as ‘Depository Services’.

  • Capital formation in an economy depends on total production.

  • If the tax rate increases with the higher level of income, it shall be called progressive tax.

  • In India One rupee coins and notes and subsidiary coins are issued by the Central Government.

  • Prime Cost is equal to variable cost only

  • New capital issue is placed in Primary market.

  • Bank deposits that can be withdrawn without notice are called Demand Deposits.

  • An expenditure that has been made and cannot be recovered is called sunk cost.

  • The practice of selling goods in a foreign country at a price below their domestic selling price is called ‘dumping‘.

  • J.B. say propounded the market law.

  • Indian Foreign Service is not a central service.

  • The high growth rate of population is characterised by high birth and low death rates.

  • Standard 18-carat gold sold in the market is 18 parts gold and 6 parts other metal.

SSC CGL Economy – Points:

  • Gold is a chemical element with the symbol Au and the atomic number 79.

  • The 12\(^{th}\)th plan aims to reduce the poverty ratio by 2017 to 10%.

  • ECS in banking transactions stand for Electronic Clearing Service.

  • Cartel is a form of Monopoly.

  • Kuznets said that “The national income consists of a collection of goods and services reduced to common basis by being measured in terms of money.”

  • According to 2011 census report, 70% of the population living in rural areas.

  • Short term commercial borrowings are not included in the current account of India’s Balance of Payments.

  • Engel’s Law states the relationship between quantity demanded and income of the consumers.

  • Imputed gross rent of owner occupied buildings is a part of final consumption.

  • Free trade is referred to the free movement of goods from one country to another.

  • The economy of scale means a reduction in the unit cost of production.

  • RBI does not transact the business of Jammu & Kashmir State Government.

  • The famous book ‘The General Theory of Employment, Interest and Money’ is written by J.M. Keynes.

  • The definition of ‘small-scale industry’ in India is based on investment in machines and equipment.

  • When the total product rises at an increasing rate, the marginal product is rising.

  • The term ‘Laissez-faire’ is associated with the Capitalist form of economy.

  • In the budget figure of the Government of India, interest payments, subsidies, pensions, social services and the like are the parts of the Non-plan expenditure.

  • Green Accounting’ means measuring the National Income of the country taking into account the estimation of pollution and environment damage.

  • The supply of agricultural products is generally inelastic.

  • Income tax, Custom tax, Excise duty is collected by the Central Government.

SSC CGL Economy – Points:

  • The permission given to a bank customer to draw cheques in excess of his current account balance is called an overdraft.

  • NABARD’ is associated with the development of the agricultural sector and rural areas.

  • National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India, headquartered at Mumbai with branches all over India.

  • Cheep money means low rates of interest.

  • Under the rules of the IMR, each member is required to declare the par value of its legal tender money in terms of the US dollars and Pound Sterling.

  • The Government takes ‘Ways and means advances’ from RBI.

  • Kisan Credit Card Scheme was introduced in 1998.

  • Compared to the rich the poor save a smaller part of their income.

  • One of the main factors that led to the rapid expansion of Indian exports is the diversification of exports.

  • When too much money is chasing too few goods, the situation is inflation.

  • Green Revolution has been associated with wheat.

  • It started in the early 1960’s and led to an increase in food grain production, especially in Punjab, Haryana and Uttar Pradesh during the early phase.

  • Percentage share of services is higher than agriculture and industry put together.

  • David Ricardo, John Stuart Mill and Thomas Malthus are classical economist.

  • World Bank is also known as the International Bank for Reconstruction and Development.

  • Together, IBRD and IDA make up the World Bank.

  • By Finance Bill the Government propose a collection of revenues for a year.

  • All India Trade Union Congress (AITUC) is the oldest trade union organization in India.

  • Prof. Amartya Sen was awarded Nobel Prize for his contribution to the field of Welfare economics.

  • Textile garments is a major item of Indian export.

SSC CGL Economy – Points:

  • Indian agriculture is typically characterised as Land scarce, labour surplus economy.

  • The process of curing inflation by reducing money supply is called Disinflation.

  • Sarvodaya stands for the upliftment of all.

  • As required by the WTO agreement, the Indian Patent Act was amended in 1999. The Act first came into force in the year 1970.

  • Long-term funds in the capital market can be raised either by borrowing from certain institutions or through Issue of securities.

  • Myanmar is not a member of the SAARC.

  • SAARC members include Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan and Sri Lanka.

  • The Exclusive Economic Zone of a country extends from her coast to 320 km.

  • The capital of IMF is made up by contribution of the member nations.

  • Jawahar Rozgar Yojna was launched in 1989.

  • Reserve Bank of India was nationalised in 1949.

  • Devaluation of currency leads to the expansion of export trade, contraction of import trade and expansion of import substitution.

  • Open market operations of RBI refer to buying and selling of Government bonds.

  • Control the production of food grains is not the objective of Public Procurement and Distribution system followed by the Indian Government.

  • Indian Institute of Foreign Trade located New Delhi.

  • The National Institute for Agricultural Marketing is located at Jaipur.

  • Per capita income is obtained by dividing National Income by Total population of the country.

  • World Bank helps countries with loans for the purpose of reconstruction and development.

  • Token privatisation or deficit privatisation of public sector units occur when the government sells 5% of shares.

  • The Narasimham Committee (1991) on financial reforms proposed for establishment of a four-tier hierarchy of the Banking structure.

SSC CGL Economy – Points:

  • The Planning Commission of India was constituted in the year 1950.

  • Production function expresses Technological relationship between physical inputs and output.

  • High birth rate and the high death rate is not a characteristic of the population of a developed country.

  • Sixth Plan gave emphasis on the removal of poverty for the first time. Sixth Five Year Plan 1980-85.

  • EXIM Policy, 3.28% targeted India’s share of global trade by 2020.

  • EXIM Bank (India) Export–Import Bank of India is the premier export finance institution in India, established in 1982 under Export-Import Bank of India Act of 1981.

  • GDP at Factor Cost is GDP minus indirect taxes plus subsidies.

  • According to Keynes, “Interest is a reward for parting with liquidity”.

  • The name given to the common currency of the European Union is Euro.

  • The 2011 Census was the 14\(^{th}\) Census.

  • Extension or contraction of quantity demanded of a commodity is a result of a change in the Unit price of the commodity.

  • Cross elasticity of demand between petrol and car is Negative.

  • The period of the Eleventh Five-Year Plan was 2007 to 2012.

  • For price discrimination to be successful, the elasticity of demand for the product in the two markets should be Different.

  • FERA in India has been replaced by FEMA.

  • Finance Commission is constituted once in five years.

  • 14\(^{th}\) Finance Commission Chairman Y. Venugopal Reddy.

  • National Income Estimates in India are prepared by Central Statistical Organisation.

  • The term ‘Mixed Economy’ denotes existence of both private and public sectors.

  • The Law of Demand expresses the effect of change in the price of a commodity on its demand.

SSC CGL Economy – Points:

  • Jeevan Shikhar’ a scheme related to investment and saving was launched during 2016- 17, by LIC.

  • Decentralisation was essential for the economic development of the country was the reason for Gandhiji’s support to the decentralization of power.

  • The present Indian monetary system is based on the Minimum Reserve System.

  • A situation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as Absolute Poverty.

  • Full convertibility of a rupee means Determination of rate of exchange between the rupee and foreign currencies freely by the market forces of demand and supply.

  • India is called a mixed economy because of the existence of the Public Sector and Private Sector.

  • The term stagflation refers to a situation where the rate of growth is slower than the rate of the price increase.

  • According to 2011 census, the largest state of India, population wise is Uttar Pradesh.

  • The term ‘Green Revolution’ has been used to indicate higher production through enhanced agricultural productivity per hectare.

  • Revealed Preference theory was propounded by P. A. Samuelson.

  • Gross Domestic Product is defined as the value of all final goods and services produced in an economy in a year.

  • An exceptional demand curve is one that moves upward to the right.

  • Production function explains the relationship between initial inputs and ultimate output.

  • Urjit Patel has been appointed the Governor of RBI after the retirement of Raghu Ram Rajan.

  • The Draft of the Five Year Plans in India is approved by the National Development Council.

  • In Economics the terms ‘Utility’ and ‘Usefulness’ have a different meaning.

  • Nature of unemployment in agriculture in India is only seasonal and only disguised.

  • Nobel Prize winning Indian AmartyaSen is known for his work in the field of Economics.

  • If two commodities are complements, then their cross-price elasticity is Negative.

  • The opportunity cost of production of a commodity is the next best alternative output sacrificed.

SSC CGL Economy – Points:

  • Surplus earned by a factor other than land in the short period is referred to as Quasi-rent.

  • When the interest rate in the economy goes up then savings increases, lending decreases and cost of production increases.

  • Value Added Method, Income Method, Expenditure Method are the methods of measurement of National Income.

  • Labour Intensive Technique would get chosen in a Labour Surplus Economy.

  • A teacher teaching his own daughter at home would not constitute an economic activity.

  • The Finance Commission Adjudicates on the sharing of resources between the Centre and the States.

  • Net National Product of a country is GNP minus depreciation allowances.

  • Brain drain refers to emigration of skilled persons.

  • Formalised system of trading agreements with groups of countries is known as Trading blocks.

  • Expenditure method, Product method, and Income method are the methods of estimating National Income.

  • The monetary policy is India is formulated by Reserve Bank of India.

  • A short-term government security paper is called a Treasury bill.

  • WTO basically promotes multilateral trade.

  • Under Monopolistic competition, firms have excess capacity.

  • Price theory is also known as Micro Economics.

  • At present, India is following Floating exchange rate.

  • National Income is the Net National Product at factor cost.

  • A want becomes a demand only when it is backed by the Utility of the product.

  • The terms ‘Micro Economics’ and ‘Macro Economics’ were coined by Ragnar Frisch.

  • During the period of inflation, tax rates should Increase.

SSC CGL Economy – Points:

  • The banking sector is the biggest tax paying sector in India.

  • Economics is what it ought to be.”—This statement refers to Normative economics.

  • The excess of the price a person is to pay rather than forego the consumption of the commodity is called ‘Producers’ surplus.

  • According to RBI’s Report on the trend and progress of banking, the Non-performing Assets (NPA’s) in India for 2015-16 for Indian Banks in 2015 have stood at 7%.

  • TRIPS and TRIMS are the terms associated with WTO.

  • Economic Outlook is released by PM’s Economic Advisory Council.

  • India and the U.S. have decided to finalize agreements related to trade and Investment, intellectual property and traditional knowledge.

  • The exchange of commodities between two countries is referred as bilateral trade.

  • The presence of a parallel economy or black money makes the monetary policies less effective.

  • Taxes on advertisement are levied and collected by the center but their net proceeds are wholly transferred to the state.

  • Census of the population in India is done after every 10 years.

  • When the price of a commodity falls, we can expect the demand for it to increase.

  • Satyam has been merged with software company Tech Mahindra.

  • The bank cheques are processed by using MICR.

  • According to the Suresh Tendulkar committee on Bellow Poverty Line (BPL) number is 38%.

  • AGMARK is a quality guarantee stamp for commodities.

  • The term AGMARK was coined by joining the words ‘Ag’ to mean agriculture and ‘mark’ for a certification mark.

  • Trade Development Authority, Minerals and Metals Trading Corporation and State Trading Corporation of India are known for export promotions.

  • Excise duty, Custom duty and Income tax belongs to central tax.

  • World Trade Organisation was started in the year 1995.

SSC CGL Economy – Points:

  • Sir C.D. Deshmukh was the Governor of RBI at the time of its nationalisation.

  • The abbreviation SEBI stands for Securities and Exchange Board of India.

  • It was established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992.

  • The most distinguishing feature of oligopoly is number of firms.

  • J. M. Keynes defined investment as “the construction of a new capital asset like machinery or factory building”.

  • International Monetary Fund:
    • i. provides short term credit to its members
      ii. arranges for conversion of currencies
      iii. secures stability in the rates of foreign exchange

  • Insurance sector in India is regulated by IRDA.

  • It was constituted by the Insurance Regulatory and Development Authority Act, 1999.

  • In India ‘NDDB’ means National Dairy Development Board.

  • The National Dairy Development Board (NDDB) was created in 1965, founded by Dr. Verghese Kurien.

  • In the context of the stock market, IPO stands for Initial Public Offer.

  • Consequent upon the recommendations of the Working Group on Rural Banks, 5 Rural Regional Banks were initially set up in the year 1975.

  • Poverty in less developed countries is largely due to income inequality.

  • Among the tax revenues of the Union Government, the most important source is Union Excise Duties.

  • There was a substantial increase in food grains production specially wheat production, during the period after 1966.

  • Delhi has the maximum number of registered vehicles on the road.

  • The Bhilai Steel Plant has been established with the assistance of Russia.

  • It was set up with the help of the USSR in 1955.

  • In the budget for 2017-18, the fiscal deficit (% of GDP) for 2017 – 18 has been projected at 3.2%.

  • As announced by the Finance Minister in his Budget speech on \({28}^{th}\) February 2011, with a view to assist States in modernising their stamp and registration administration, E-stamping is expected to rolled out in all the districts of different States in a period of three years.

SSC CGL Economy – Points:

  • The purchase of shares and bonds of Indian companies by Foreign Institutional Investors is called Foreign Indirect Investment.

  • In the Budget 2017-18, personal income tax in Rs 2.5 lakh-5 lakh bracket has been reduced to 5 percent from 10 percent.

  • In Budget 2017-18, target for agricultural credit in 2017-18 has been fixed at a record Rs 10 lakh crore.

  • When there is an official change in the exchange rate of domestic currency, then it is called Revaluation.

  • Inflation redistributes income and wealth in favour of Rich.

  • The fringe benefit tax was introduced in the budget of 2005-06.

  • In the Budget 2015-16, allocation for Agriculture and Farmers welfare is Rs 35,984 crore.

  • As announced by the Finance Minister in his budget speech on 2015-16, the income tax exemption limit for individuals other than senior citizen and women has been raised to Rs. 250,000.

  • According to the latest ‘Education Development Index’ based on a series of surveys conducted by the National University of Education, Planning and Administration and released in February, 2011, the state with the highest Development Index is Kerala.

  • Rail Development Authority will be established as statutory body to enable fair pricing of railway services and promote competition, protect customer interests and determine efficiency standards.

  • The reserve held by commercial banks over and above the statutory minimum, with the RBI are called Excess Reserves.

  • Ministry of Finance is authorized to issue coins in India.

  • The ‘break-even’ point is where total revenue equals total cost.

  • In the budget, 2011 the finance minister had announced that an international award with prize money of 1 crore is being instituted in memory of Rabindranath Tagore for promoting Universal Brotherhood.

  • Coverage of Fasal Bima Yojana to go up from 30 percent of cropped area, to 40 percent in 2017- 18, 50 percent in 2018-19.

  • Brown Revolution’ is Growth of food processing and soft drinks industries in India.

  • The total value of goods and services produced in a country during a given period is National Income.

  • Mechanization of Indian agriculture on a considerable scale is not possible due to small holdings.

  • Controlling Government Spending is not a function of the central bank in an economy.

  • The government set up a committee headed by the chairman, Central Board of Direct Taxes some time back to go into aspects of generation of black money, its transfer abroad and bringing back such money into India’s legitimate financial system.

SSC CGL Economy – Points:

  • Per capita income is equal to = National Income Total Population of the country.

  • President appoints the Finance Commission.

  • It is established under Article 280 of the Indian Constitution.

  • A favourable balance of Trade of a country implies that exports are greater than imports.

  • The objective of ‘Jawahar Rojgar Yojana’ is to, provide employment to youth in rural areas, create employment opportunities for unemployed person, strengthen the rural economic and social structure.

  • The Annapurna Scheme was implemented in the year 2000.

  • The value of a commodity expressed in terms of money is known as Price.

  • The Reserve Bank of India was nationalized in 1949.

  • In Capitalistic Economy, the prices are determined by Demand and Supply.

  • Co-operative farming is not a cause of low productivity in Indian Agriculture.

  • Tooth paste is a product sold under prefect competition.

  • There is no selling cost under monopolistic competition.

  • Inspection of exported goods for quality assurance is not a function of the Exim Bank of India.

  • According to Karl Marx, the change in economic system results in inevitable changes in the entire systems.

  • A commodity will have value only if it is scarce relative to demand.

  • For controlling inflation, the central bank should purchase Government securities in the open market.

  • Economic Survey of India’ is published every year by Ministry of Finance.

  • When labour supply curve bends backward, leisure becomes an inferior commodity.

  • When labour supply curve bends back-ward people will substitute leisure for working as wages are increased.

  • The term ‘food security’ implies sufficient supplies of food at affordable prices.

SSC CGL Economy – Points:

  • Cement is an example for derived demand.

  • A fall in the price of its complement does not shift the demand curve for a product to the right.

  • Demand curve is a line on graph showing the quantity of a goods consumers would be able and willing to buy in a given market and specified time period over a range of possible prices, other things being equal. The demand curve is depicted as downwardsloping from left to right.

  • The Central Government gives grants-in-aid to the States out of the consolidated Fund of India on the basis of the recommendation of the Finance Commission.

  • Monopolist resorts to price discrimination depending upon the Elasticity of demand.

  • Economic planning is an essential feature of Socialist economy.

  • The HYV programme in India is also called as New Agricultural Strategy.

  • Meaning of HYV is High-yielding varieties.

  • Gross Domestic Product is the monetary value of all final goods and services produced in a year.

  • Gross Domestic Product (GDP) is the broadest quantitative measure of a nation’s total economic activity More specifically, GDP repre-sents the monetary value of all goods and services produced within a nation’s geographic borders over a specified period of time.

  • Oligopoly market structures has a kinked demand curve.

  • Oligopoly is a market structure in which a small number of firms have the large majority of market share. An oligopoly is similar to a monopoly, except that rather than one firm, two or more firms dominate the market.

  • Plan Year
    I Plan 1951 – 1956
    III Plan 1961 – 1966
    XI Plan 2007 – 2012
    VI Plan 1980 – 1985

  • NABARD deals with credit to Agriculture and Rural Development.

SSC CGL Economy – Points:

  • National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India, headquartered at Mumbai with branches all over India. The Bank has been entrusted with “matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”.

  • As per the results of the 2011 Population Census, Kerala, Lakshadweep and Mizoram occupies the three top places in respect of literacy.

  • Haryana has the lowest child sex ratio as per the 2011 Census.

  • Diversion of funds, Wrong dividend policy and Mismanagement are internal factors for industrial sickness.

  • IDBI – Financial assistance to large industries.
    • SIDBI – Financial assistance to small industries
      FCI– Distributes food grains throughout the country through PDS
      EXIM Bank – Financial assistance to exporters and importers

  • Customs duty earned by Union Government is not distributed among State Governments.

  • The Programme which is being implemented in all the districts of the country is Sarva Shiksha Abhiyan.

  • Sarva Shiksha Abhiyan or SSA, is aimed at the universalisation of elementary education in a time bound manner”, as mandated by the 86th Amendment to the Constitution of India making free and compulsory education to children between the ages of 6 to 14 a fundamental right.

  • As per 2011 census, in India the number of females per thousand males is 940.

  • Wanchoo Committee dealt with Direct Taxes.

  • Justice Wanchoo headed a committee constituted by the Central Government (1971), which recommended setting up of Income Tax Settlement Commission, to serve as an alternative Dispute resolution body. The Commission was set up with effect from 1.4.1976.

  • As per the 2011 population census, the most populous state in the country is Uttar Pradesh.

  • M-commerce is mobile commerce.

  • M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants.

  • Low cost housing is an example for merit wants.

  • Consumption for the sake of enjoying social acknowledgement is called Conspicuous consumption.

  • Citi Bank was the first to introduce ATMs to the world.

  • The state which has registered the highest population growth rate according to 2011 census is Nagaland.

  • Alfred Marshall is the Master of “Partial Analysis”.

  • India making ‘Double Taxation Avoidance Agreements’ (DTAA) with other countries for the pro motion of Bilateral trade.

SSC CGL Economy – Points:

  • Brain drain has been caused by lack of employment opportunities.

  • The study of population is known as Demography.

  • Mother’s service is an example for a non economic good.

  • Narsimhan committee is associated with banking sector reforms in India.

  • Fixing margin requirements, Variable interest rates and Credit rationing are the qualitative credit control measure of the RBI.

  • The \({13}^{th}\) Five Year Plan will be operative for the period 2017-2022.

  • The national income of a nation is the Sum total of factor incomes.

  • The total population divided by available arable land area is referred to as Population density.

  • Correct statement about India’s population as per the 2011 census.

  • Literacy rate has gone up to 74% from 65%.

  • Kerala has the highest literacy rate.

  • Bihar has the lowest literacy rate.

  • Dr. A. P. J. Abdul Kalam advocated the adoption of ‘PURA’ model to eradicate rural poverty.

  • Provision of Urban Amenities to Rural Areas (PURA) is a strategy for rural development in India. This concept was given by former president Dr. A.P.J. Abdul Kalam and discussed in his book Target 3 Billion which he co-authored with Srijan Pal Singh.

  • A movement along the demand curve of a commodity occurs due to change in its own price.

  • GNP calculation through Expenditure Method includes Gross Domestic Private Investments, Depreciation Expenditures and Private Consumption Expenditure etc.

  • The Cobb- Douglas Production function Q = A \({K}^{a}\) \({L}^{1-a}\) is based on constant returns to scale.

  • In economics, the Cobb–Douglas production function is a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or more inputs, particularly physical capital and labour, and the amount of output that can be produced by those inputs.

  • Monetary Policy in India is laid down and executed by Reserve Bank of India.

  • In India, the central monetary authority is the Reserve Bank of India (RBI). It is so designed as to maintain the price stability in the economy.

SSC CGL Economy – Points:

  • The commodity for which India spends the largest amount to import is Crude petroleum.

  • As per the 2011 census, the state with the largest gap in male and female literacy is Rajasthan.

  • FII is termed as ‘Hot Money’.

  • A foreign institutional investor (FII) is an investor or investment fund registered in a country outside of the one in which it is investing. Institutional investors most notably include hedge funds, insurance companies, pension funds and mutual funds.

  • Gandhian economy emphasises on Socialist and economic values.

  • It is largely characterised by rejection of the concept of the human being as a rational actor always seeking to maximize material self-interest that underlies classical economic thinking.

  • The 2004-09 Foreign Trade Policy gave emphasis to export promotion.

  • The Foreign Trade Policy 2015-2020 has been designed by including long term and medium term strategy to boost overall growth of India’s foreign trade by enhancing trade competitiveness.

  • Markets fail when they do not maximise the aggregate consumer and producer surplus.

  • Neglect of agriculture in the development process will lead to severe bottlenecks in overall development.

  • Monopolistic competition produces close substitutes.

  • Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes.

  • A Socialist economy is a planned economy.

  • A socialist economic system is characterised by social ownership and democratic control of the means of production, which may mean autonomous cooperatives or direct public ownership; wherein production is carried out directly for use.

  • The least populated State in India is Sikkim.

  • The Indian Railways inaugurated the country’s first Green Station in 2011 at Manwal.

  • Manwal is a village located in Udhampur district in Jammu and Kashmir, India. It is 28 km away from district headquarter. It is well connected with jammu and to udhampur via dhar road.

  • The BSE Sensex is based on 30 stocks.

  • The S & P BSE SENSEX also-called the BSE 30 or simply the SENSEX, is a free-float marketweighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange.

  • The funds raised by the Government within the country is known as domestic budgetary source.

SSC CGL Economy – Points:

  • Sick units are referred to BIFR.

  • From 1 December 2016, by an official notification, Government of India dissolved the Board for Industrial and Financial Reconstru-ction (BIFR) and all proceedings to be referred to the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) as per provisions of Insolvency and Bankruptcy Code.

  • The concept ‘Duopoly’ was introduced by Cournot.

  • A duopoly is a form of oligopoly where only two sellers exist in one market.

  • Group of firms is the feature of monopolistic competition.

  • The purchase and sale of securities by the Central Bank is known as Open market operation.

  • Car and diesel are the examples of Joint demand.

  • Joint demand occurs when demand for two goods is interdependent.

  • Buffer stock operations are conducted by Food Corporation of India.

  • Food Corporation of India was set up on 14 January 1965 having its first District Office at Thanjavu-rice bowl of Tamil Nadu-and headquarters at Delhi under the Food Corpo-rations Act 1964.

  • Marginal productivity theory of distribution states that the price of a factor of production depends upon its Marginal productivity.

  • The Chairman of Thirteenth Finance Commission is Dr. Vijay Kelkar.

  • The Chairman of the Fourteenth Finance Commission is Dr. Y.V. Reddy (2015-2020).

  • The addition to total cost by producing an additional unit of output by a firm is called Marginal cost.

  • In a perfectly competitive market, a firm’s Average Revenue is more than Marginal Revenue.

  • The main difference between Gross Domestic Product (GDP) and Gross National Product (GNP) is Net foreign income from abroad.

  • NABARD” is a financial Institution.

  • In Haryana the Child Sex Ratio the lowest in India.

  • Over use of resource is called “Tragedy of Commons”. It was propounded by Garett Hardin.

  • GDP (Gross Domestic Product) contributed by service sector During 2011 – 12 is 57.00%.

SSC CGL Economy – Points:

  • K.O Pant was the head of the 10th Finance Commission.

  • In India, Special Economic Zones were established to enhance Foreign Investment.

  • In the case of an inferior good, the income elasticity of demand is Negative.

  • Planning commission was set-up in the year 1950.

  • It has been replaced by a new institution named NITI Aayog.

  • The principle of maximum social advantage is the basic principle of Fiscal Economics.

  • Five Year Plan
    • i. First: 1951-56
      ii. Second: 1956-61
      iii. Third: 1961-66

  • The time of the fourth Five Year Plan was 1969-1974.

  • An economic theory is a Proposition.

  • Indian Special Economic Rules amendment came in the year 2006.

  • According to Marx, the source of value is Labour.

  • The Community Development Programme was launched in the year 1952.

  • The community development programme was launched on a pilot basis in 1952 to provide for a substantial increase in the country’s agricultural programme, and for improvements in systems of communication, in rural health and hygiene, and in rural education and also to initiate and direct a process of integrated culture change aimed at transforming the social and economic life of villagers.

  • The contribution towards GDP (Gross Domestic Product) from Agriculture During 1950-51 is 51.88% and in 2011-12 is 14.01%.

  • The share of agriculture and allied sectors (including agriculture, livestock, forestry and fishery) was 15.35 per cent of the Gross Value Added (GVA) during 2015-16 at 2011-12 prices.

  • Taxes on Services was given constitutional status much later after its introduction in a small way in 1994–95.

  • Stagflation refers to a situation which is characterised by inflation and rising unemployment.

  • Stagflation is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. It raises a dilemma for economic policy, since actions designed to lower inflation may exacerbate unemployment, and vice versa.

SSC CGL Economy – Points:

  • The demand for necessities is perfectly inelastic.

  • The ‘balance of payments of a country is in equilibrium when the demand for the domestic currency is equal to its supply.

  • Value added means value of goods and services less cost of intermediate goods and services.

  • The difference between GNP and NNP equals depreciation.

  • Dr. YV Reddy is the Chairman of the \({14}^{th}\) Finance Commission.

  • Investment multiplier shows the effect of investment on Income.

  • Buffer stock, Imports and Support price are related to the Agricultural Price Policy.

  • If a good has negative income elasticity and positive price elasticity of demand, it is a giffen good.

  • A giffen good occurs when a rise in price causes higher demand because the income effect outweighs the substitution effect.

  • The opportunity cost of a factor of production is what it can earn in some other use.

  • Gold, SDRs and Foreign currency assets form parts of the foreign exchange reserves of India.

  • Social accounting system in India is classified into Income, product and expenditure.

  • Forced Savings refer to reduction of consumption consequent to a rise in prices.

  • The demand for labour is called derived demand.

  • Expansion of the main plant of a company, purchase of machinery and an increase in business inventories are investment expenditures in goods and services.

  • Undistributed profits represents the Savings of the Private Corporate Sector.

  • The headquarters of RBI is in Mumbai.

  • Silver holding of the RBI is not included in the foreign-exchange reserves of India.

  • The number of workers who would offer themselves for employment at different wage rates is known as Supply of Labour.

  • Land, Capital and Technology is factors of production.

SSC CGL Economy – Points:

  • As income increases the demand for inferior goods decreases.

  • DBT as coined by Government recently stands for Direct Benefit Transfer.

  • Direct Benefit Transfer or DBT is an attempt to change the mechanism of transf-erring subsidies launched by Government of India on \({1}^{st}\) January 2013. This program aims to transfer subsidies directly to the people through their bank accounts.

  • If a film is operating at loss in the short-period in perfect combination, it should continue to operate as long as it covers even the variable costs.

  • Excise Duty is an indirect tax.

  • service tax, central excise and customs duty, and value added tax (VAT) are some indirect taxes in India.

  • Taxes on professions can be levied by State government only.

  • Price stabilisation is not a function of money.

  • Closed Economy” means a country having no imports and exports.

  • At “Break-even point” the firm is at zero-profit point.

  • Externality theory is the basic theory of Environomics.

  • Functional Finance” is associated with Abba ‘P’ Lerner.

  • Functional finance is an economic theory proposed by Abba P. Lerner, based on effective demand principles and chartalism. It states that government should finance itself to meet explicit goals, such as taming the business cycle, achieving full employment, ensuring growth, and low inflation.

  • Diamonds are priced higher than water because their marginal utility to buyers is higher than that of water.

  • Free trade Centres is restricted to Special Economic Zones.

  • A special economic zone (SEZ) is an area in which business and trade laws are different from the rest of the country. SEZs are located within a country’s national borders, and their aims include: increased trade, increased investment, job creation and effective administration.

  • The most powerful woman in business in India as rated by the “Fortune” for the year 2016 is Arundhati Bhattacharya.

  • An organization’s profitability depends on Speed of processing the data.

  • As per the TRIPS Agreement-1994, a good originating from a region with specific character/quality/reputation is covered to be protected under the IPR as GI (Geographical Indicator).

  • Gold’ is mainly related to International market.

SSC CGL Economy – Points:

  • Bilateral monopoly refers to the market situation of one seller and one buyer.

  • The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs was J.B.Say.

  • The Minimum Support Price for food grains was introduced in the year 1974.

  • The MSP is announced by the Government of India for 25 crops currently at the beginning of each season viz. Rabi and Kharif.

  • Entrepreneurs benefits the most during the inflationary period.

  • An increase in the quantity supplied suggests a movement up along the supply curve.

  • Preparation of butter, ghee by a household for their own use is a part of consumption.

  • The production, marketing, storage, advertisement and consumption of smokeless tobacco is banned in Assam.

  • In India, the interest rate on savings accounts in all the nationalized commercial banks is not fixed by Reserve Bank of India.

  • Pegging up of a currency means, fixing the value of a currency at a constant level.

  • A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime where a currency’s value is fixed against either the value of another single curr-ency, to a basket of other currencies, or to another measure of value, such as gold.

  • Plan Holiday was declared after The Third Five Year Plan.

  • Due to miserable failure of the Third Plan the government was forced to declare “plan holidays” (from 1966–67, 1967–68, and 1968–69). Three annual plans were drawn during this intervening period.

  • CRR, Bank Rate and Change in margin requirement is helpful in controlling money supply.

  • Growth rate of population means the difference between birth and death rates.

  • Central Food Technology and Research Institute(CFTRI) is located in Mysore.

  • The first Five Year Plan of the Government of India was based on Harrod-Domar model.

  • Jawahar Rozgar Yojana was introduced in Seventh Five Year Plan.

  • Capital market deals with long term fund.

  • A capital market is a financial market in which longterm debt or equity-backed securities are bought and sold.

SSC CGL Economy – Points:

  • The new Agricultural Strategy in India was introduced in 1966.

  • The sale of branded articles is common in a situation of monopolistic competition.

  • Production refers to creation of utilities.

  • The law of diminishing returns applies to all sectors.

  • Diminishing returns is the decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.

  • Franchising is a form of licensing.

  • The study of factor pricing is alternatively called the theory of functional distribution.

  • SEBI was set up in 1988.

  • It was established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992.

  • In a free enterprise economy, resource allocation is determined by the pattern of consumer’s spending.

  • Rashtriya Krishi Bima Yojana was introduced In 1999.

  • Buyers and Sellers will have perfect knowledge of market conditions under Duopoly.

  • The name of the common currency launched by members of the European Union is Euro.

  • Average propensity to consume is defined as Aggregate consumption / Aggregate income.

  • In short run, if a competitive firm incurs losses, it will stop production.

  • Relation always holds true: Income = Consumption + Saving.

  • The Keynesian consumption function shows a relation between aggregate consumption and aggregate income.

  • Over short period, when income rises, average propensity to consume usually falls.

  • If the average revenue is a horizontal straight line, marginal revenue will be Identical with average revenue.

  • The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called trickle down Hypothesis.

SSC CGL Economy – Points:

  • Trickledown Hypothesis describe the belief that if high income earners gain an increase in salary, then everyone in the economy will benefit as their increased income and wealth filter through to all sections in society.

  • According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations, in the marginal efficiency of capital.

  • The main emphasis of Keynesian economics is on expenditure.

  • In India the largest single item of current government expenditure is Interest payment of debt.

  • The demand of a factor of production is derived.

  • A unit price elastic demand curve will touch neither price axis, nor quantity axis.

  • If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be equal to unity.

  • According to Modern Theory of Rent, rent accrues to any factor.

  • The book which is at the centrepiece of the study of Macro–Economics was written by Prof. J.M. Keynes.

  • The basic problem studied in Macro –Economics is production of income.

  • Interest paid to a bank for a crop loan is a factor payment.

  • Economic growth refers to continuous growth of per capita real income over a period of time in an economy.

  • Correct Statements about Economy:.
    • i. The central problem of an economy is the problem of allocation of resources.
      ii. Economy faces the problem of utilisation of resources.
      iii. Economy faces the problem of growth of resources.

  • In the case of direct taxes, the payment liability and the ultimate burden of the tax lies upon the person on whom it has been imposed.

  • Capitalism Is based on the principle of surplus value.

  • If only a part of the labour force employed by a firm can be dismissed at any time and without pay, the total wages and salaries paid by the firm must be considered a variable cost.

  • Equilibrium price in the market is determined by the equality between marginal cost and marginal revenue.

  • In the national context exports of Mangoes to UK indicates Macro approach.

SSC CGL Economy – Points:

  • Internal economy arise when there is expansion in an industry.

  • One of the features of a free market economy is consumer’s sovereignty.

  • Gross National Product – Depreciation Allowance = Net National Product.

  • State Bank of India was previously known as Imperial Bank of India.

  • On \({2}^{nd}\) June 2015 a Conference on Make in India Indigenisation of currency was organised by the department of Economic Affairs, Ministry of Finance, Govt. of India, Finance Minister inaugurated the Conference.

  • The business in Stock Markets and other securities markets is regulated by Securities and Exchange Board of India.

  • The Liquidity Preference Theory of Interest was propounded by J.M. Keynes.

  • Variable Cost is related to marginal cost.

  • Movement of people from a village to a small town and later to a city is known as step-wise migration.

  • Wall Street” is the name of the Stock Exchange of New York.

  • Feature of Indifference Curve.
    • i. They do not intersect each other.
      ii. They slope downwards to the right.
      iii. They are parallel to each other.

  • The difference in the value of visible exports and visible imports is called Balance of Trade.

  • The balance of trade (BOT) is the difference between a country’s imports and its exports for a given time period. The balance of trade is the largest component of the country’s balance of payments.

  • When income increase, consumption also increases in a lower proportion.

  • From the national point of view study of sales of TISCO indicates Micro Approach.

  • An entrepreneur buying plane tickets for a family trip is an example of investment Expenditure.

  • Steel sheets used in the production of furniture is an example of an intermediate good.

  • A teacher teaching his own son is not an economic activity.

  • Indian economy is an example of a mixed economy because private sector coexists with public sector enterprises.

  • AMRUT, Swachh Bharat and Jan Dhan Yojana are schemes of the present Government.

SSC CGL Economy – Points:

  • The Department of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy, abbreviated as AYUSH, purposed with developing education and research in ayurveda, yoga, naturopathy, unani, siddha, and homoeopathy, Sowa-rigpa and other Indigenous Medicine systems. The department was created in March 1995 as the Department of Indian Systems of Medicine and Homoeopathy.

  • Excise duty on liquor is levied by the State governments.

  • The major objective of monetary policy is to Promote economic growth with price stability.

  • Main objectives of fiscal policy in India are to promote price stability, minimize the inequalities of income & wealth and to promote employment opportunities.

  • Commercial banks lend to priority sectors like agriculture and Small scale industries.

  • The accounting year of the Reserve Bank of India is July-June.

  • The GST (Goods and Services Tax), recently passed by Government will be levied on Tobacco among Petroleum Crude, Tobacco, Natural Gas and Aviation Turbine Fuel.

  • The second Green Revolution aims at increasing agricultural output to promote Inclusive growth.

  • The rate of tax increases as the amount of the tax base increases is called progressive tax.

  • The supply side economies lays greater emphasis on producer.

  • FCRA administered by the Ministry of Home Affairs stands for Foreign Contribution Regulation Act.

  • Demand will become a grant after the demand is granted.

  • MUDRA Bank has been launched to help small business.

  • IRDA controls the insurance business of India.

  • The Swarna Jayanti Shahari Rojgar Yojna (SJSRY) mainly aims at creating employment opportunities for both self employment and wage employment in urban areas.

  • Golden Hand Shakes scheme is the name of the Voluntary Retirement Scheme.

  • If a country devalues its currency then its exports become cheaper.

  • Sectoral distribution of GDP index measures economic development of a country.

  • Fact: An excise duty or excise tax is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities.

  • Golden Revolution in India refers to growth of Overall Horticulture, Honey and Fruit Production.

SSC CGL Economy – Points:

  • The industry having the largest investment in Indian Economy is steel.

  • If Government expenditure exceeds the Government revenue on current account then it would result into deficit budgeting situation.

  • Disguised unemployment in India is mainly related to agricultural sector.

  • IBRD is also called as World Bank.

  • The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to middle-income developing countries. The IBRD is the first of five member institutions that compose the World Bank Group and is headquartered in Washington, D.C.

  • Residex’ is associated with land prices.

  • Rashtriya Mahila Kosh meets the credit needs of the poor women.

  • Rashtriya Mahila Kosh was established in 1993. It extends micro-credit to poor and underprivileged women through a collateral-free, quasi-formal delivery mechanism where NGOs, women cooperatives, federations etc. act as intermediaries.

  • Capital gains refers to goods which help in the further production of goods.

  • Smart Money’ term is used for credit card.

  • From the national point of view study of sales of mobile phones by BSNL indicates micro approach.

  • Money market is a market for short term fund.

  • Pump priming should be resorted to at a time of deflation.

  • Pump priming is the action taken to stimulate an economy, usually during a recessionary period, through government spending, and interest rate and tax reductions. The term pump priming is derived from the operation of older pumps, a suction valve had to be primed with water so that the pump would function properly.

  • Fixed Foreign Exchange Rate can be changed by RBI.

  • IDA is known as ‘Soft Loan Window’ of World Bank.

  • Phillips curve shows the inverse relationship between unemployment and inflation rates.

  • Short term contraction and expansions in economic activity are called the business cycle.

  • Wall street collapse led to Great Depression.

  • Information Technology industries is known as ‘Sunrise Industries’.

SSC CGL Economy – Points:

  • The term ‘Macro Economics’ was used by Ragner Frisch.

  • The aim of Differential Interest Scheme was to provide concessional loans to weaker section of the society.

  • Tax on inheritance is called Estate Duty.

  • Special Drawing Rights were created by IMF.

  • India’s first green rail corridor was recently launched in Tamil Nadu.

  • The amount of insurance cover provided by Indian Railways for passengers at a premium of Rs 1 is 10 lakh.

  • The concept of joint sector implies cooperation between public sector and private sector industries.

  • Selling cost have to be incurred in case of monopolistic competition.

  • Right to private property, existence of competition and freedom of choice to consumers are features of a capitalist economy.

  • When the demand for a good increases with an increase in income, such a good is called superior good.

  • The demand of a commodity is a direct demand but the demand of a factor of production is called a derived demand.

  • Depreciation is loss in value of machinery.

  • Industry which produces the most solid waste is manufacturing.

  • The Kaushal Kendra (skilling center) under the Pradhan Mantri Mudra Yojana has been inaugurated in the city of Noida.

  • Heavy industries was not recognised by Mahatma Gandhi.

  • As per the 2016-17 Budget, the largest source of money to the Government of India is borrowings and other liabilities.

  • According to Malthusian theory of population, population increases in geometric ratio, food supply increases in arithmetic ratio.

  • Bank rate is a rate at which central bank of a country advances loans to other banks in the country.

  • Tax system that will help to reduce economic inequalities in India is Progressive Tax.

  • Karnataka Government has recently abolished “agriculture income tax”.

SSC CGL Economy – Points:

  • Expenditure method, output method and income method are methods of estimating national income.

  • Prime Minister’s ‘Ujjwala Yojana’ is related to free distribution of LPG connections to socially backward classes.

  • The Pradhan Mantri Ujjwala Yojana is a welfare program of the government of India. The stated objective of the program is providing 50,000,000 LPG connections to women from families below the poverty line. As of 8 November 2016, ten million LPG connections had been completed.

  • The innovation theory of profit was proposed by Schumpeter.

  • Innovation theory of profit posits that the main function of an entrepreneur is to introduce innovations and the profit in the form of reward is given for his performance.

  • Beginning from the financial year 2017-18 NITI Ayog plans to replace the 5 year plans with 15 Year Vision Document.

  • Tax that is levied by state government is entertainment tax.

  • HDI is an aggregate measure of progress in three dimension, Food Security, Employment and Income.

  • Green Banking’ means banks financing pro-environmental projects.

  • A green bank (sometimes referred to as green investment bank, clean energy finance authority, or clean energy Finance Corporation) is a financial institution, typically public or quasi-public, that uses innovative financing techniques and market development tools in partnership with the private sector to accelerate.

  • Trading is tertiary activity.

  • State in India has introduced FAT tax on junk food is Kerala.

  • The rate at which RBI gives short term loan to commercial banks is called repo rate.

  • The nationalisation of major commercial banks took place in 1969.

  • The BRICS New Development Bank is headquartered at Shanghai.

  • Human Development Index is prepared by UNDP.

  • The ‘General Equilibrium Analysis’ was developed by Walras.

  • In economics, general equilibrium theory attempts to explain the behaviour of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium.

  • Insider Trading is related to share market.

  • The operational period of 12th Five year Plan is 2012-17.

SSC CGL Economy – Points:

  • Money transfer through mobile is called IMPS.

  • G – 20 is the group of 20 largest economies represented by their Finance Ministers and Central Bank Governors.

  • In India, the Black Revolution is related to the manufacturing of crude petroleum.

  • Kutir Jyoti Scheme is associated with providing electricity to rural families living below poverty line.

  • CENVAT is related to excise Duty.

  • Malthusian theory is associated with population.

  • Per capita monetary income is the parameter for the economic development.

  • Saving is that portion of money income that is not spent on consumption.

  • Amartya Sen win the Nobel Prize in the field of Welfare Economics.

  • The role of ‘Ombudsman’ in a bank is to provide quality and speedy redressal of grievances of customers.

  • A ‘Market Economy’ is one which is free from the Government control.

  • Regional Rural Banks are sponsored by Nationalised Commercial Bank.

  • The Chief Economic Advisor to the Government of India is Arvind Subramanian.

  • Portfolio investment is considered as unsafe.

  • Labour Bureau brings out the ‘Consumer Price Index Number’ for industrial workers.

  • The basis of determining dearness allowance to employees in India is Consumer Price Index.

  • An indifference curve measures the same level of satisfaction from two commodities.

  • Stand up India’ scheme launched by the Prime Minister recently is related with promotion of entrepreneurship among SC, ST and women.

  • International Bank for Reconstruction and Development is also known as ‘World Bank’.

  • Indonesia is not a member of the “BRICS” group.

SSC CGL Economy – Points:

  • Taxation, public borrowing and public expenditure are instruments of fiscal policy.

  • In a perfect competition market forms, a firm does not exercise control over price.

  • The name of portal launched by RBI recently to check illegal money collection is Sachet.

  • This website will enable public to obtain information regarding entities that accept deposits, lodge complaints and also share information regarding illegal acceptance of deposits.

  • The main effect of Direct Taxes is on income.

  • The term ‘Dumping’ refers to sale in a foreign market of a commodity just at a price below marginal cost.

  • World Economic Outlook report is published by IMF.

  • Bilateral monopoly situation is when there is only one buyer and one seller of a product.

  • Lorenz curve shows income distribution.

  • Services areas make the largest contribution to national income in India.

  • EXIM, NABARD, SIDBI are non-banking financial institutions.

  • The BRICS New Development Bank has been set up for funding infrastructure projects in emerging economies for sustainable development.

  • An indifference curve measures same level of satisfaction derived from different combinations of commodity X and Y.

  • Himayat’ is a training cum-placement programme for unemployed youth in the state of Jammu and Kashmir.

  • Redistribution of income in a country can be brought about through progressive taxation combined with progressive expenditure.

  • Fiscal policy in India is formulated by Finance Minister.

  • The \({14}^{th}\) Finance Commission has recommended increase in state share in net proceeds from tax collection from 32% to 42%.

  • The new symbol of Indian currency is designed by Uday Kumar.

  • MUDRA’ is a development and refinance agency.

  • The limit of Territorial water of a country from the coast is 22.20 K.M.

SC CGL Economy – Points:

  • Banking is included in the Tertiary sector.

  • The first Indian Governor of the Reserve Bank of India was C. D. Deshmukh.

  • Corporation Tax a tax levied by Centre and not shared with States.

  • Expansion of GATT is General Agreement on Trade and Tariffs.

  • Cooperative farming has been most successful in Denmark.

  • Globalisation of Indian Economy” denotes having minimum intervention in economic relations with other countries.

  • Pradhan Mantri Jan Dhan Yojana’ has been launched for Promoting financial inclusion in the country.

  • Economic Survey in India is published officially, every year by the Ministry of Finance.

  • An octroi is a tax.

  • At a Stock Exchange securities are bought and sold.

  • The headquarters of RBI is in Mumbai.

  • Swarna Jayanti Gram Swarojgar Yojna has now been restructured as National Rural Livelihoods Mission.

  • The World Trade Organisation, which replaced GATT, has its Head Quarters in Geneva.

  • Full form of FDI is Foreign Direct Investment.

  • Wages and prices chase each other at a very quick speed in hyper-inflation.

  • Banking comes under tertiary sector.

  • The tertiary sector consists of the production of services instead of end products. Services (also known as “intangible goods”) include attention, advice, access, experience, discussion, and affective labor.

  • A basic characteristic of ‘Oligopoly’ is few sellers, many buyers.

  • The main objective of the \({5}^{th}\) Five Year Plan was removal of poverty and achievement of selfreliance.

  • In Indian Economy, the sectors are divided into Private and Public on the basis of ownership of enterprises.

SSC CGL Economy – Points:

  • Output method is used to measure agricultural income in India.

  • The National Income in India for the first time was estimated by Dadabhai Naoroji.

  • GDP – indirect taxes + subsidies = GDP at factor cost.

  • Establishment of Chittaranjan Locomotive took place during First Five Year Plan.

  • The meaning of ‘Laissez Faire Policy’ is that an economic system should be free from government intervention or moderation and to be driven on by market forces.

  • Planned Economy in India is based on socialist system.

  • A planned Economy is a type of economic system where investment and the allocation of capital goods is determined by an Economy-wide plan of production.

  • Planning Commission was constituted in India in 1950.

  • The Planning Commission was an institution in the Government of India, which formulated India’s FiveYear Plans, among other functions. In 2015, Planning Commission was replaced by the newly formed NITI Aayog.

  • Five Year Plans and their related years

    • Five Year Plan Year
      First Five Year Plan 1951-1956
      Third Five Year Plan 1961-1966
      Fifth Five Year Plan 1974-1978
      Eight Five Year Plan 1992-1997
      Eleventh Five Year Plan 2007-2012

  • Fifteen (15) Miniratna companies are there in Category – II.

  • As on \({13}^{th}\) September 2017, there are 8 Maharatnas, 16 Navratnas and 74 Miniratnas.

  • Miniratnas is divided in two categories. In category – I, there are 59 companies.

  • GNP – depreciation allowances = NNP.

  • Offloading of government shares to private companies is known as disinvestment.

  • Dairy comes under primary sector of Indian Economy.

  • Indian Economy is classified into three sectors viz, Primary sector, Secondary sector and Tertiary sector.

  • Agriculture, forestry, pasturing, mining, fishing encompasses primary activities as their products are essential or vital for human beings.

  • Moderate degree of controlled inflation called is reflation.

SSC CGL Economy – Points:

  • The full form of, the credit rating agency in India, ‘CARE’ is Credit Analysis and Research.

  • The difference of Revenue expenditure and Revenue receipts is called as Revenue Deficit.

  • The full form of GNI is Gross National Income.

  • Gross National Income (GNI) is defined as the sum of value added by all producers who are residents in a nation, plus any product taxes (minus subsidies) not included in output, plus income received from abroad such as employee compensation and property income.

  • An apex institution in the sphere of Agriculture credit in India is NABARD (National Bank for Agriculture and Rural Development).

  • Gross Domestic Product in India is measured by Central Statistics Office.

  • The ‘Rolling Plan’ was suggested by Gunnar Myrdal.

  • Rolling plan is a plan which is designed to continue over a period of time and is subject to regular review and updating.

  • Tendulkar Committee’ was constituted to measure poverty.

  • In 2005, Suresh Tendulkar committee was constituted by the Planning Commission. The current estimations of poverty are based upon the recommendations of this committee.

  • Real estate comes under tertiary sector.

  • The full form of PMGSY is Pradhan Mantri Gram Sadak Yojana.

  • The Pradhan Mantri Gram Sadak Yojana (PMGSY) is a nationwide plan in India to provide good all-weather road connectivity to unconnected villages.

  • Organisation/group and their related head quarter.

    • Organisation/Group Head Quarter
      IMF Washington D.C
      WTO Geneva
      ADB Philippines
      SAARC Kathmandu

  • Twelfth Five Year Plan had a motive of ‘Faster, More inclusive and Sustainable growth’.

  • \({12}^{th}\) Five Year Plan of the Government of India (2012–17) aims at rate a growth rate of 8%.

  • Currently, Seventeen (16) Navratnas CPEs (Central Public Sector Enterprises) are there in India.

  • Demand curve will shift forward, when price of complementary good falls.

  • The full form of NSDL is National Securities Depository Limited.

SSC CGL Economy – Points:

  • National Securities Depository Limited (NSDL) is an Indian central securities depository based in Mumbai.

  • It was established on 8 November 1996.

  • If exports equal imports then GDP =GNP.

  • The minimum base rate fixed by RBI is 9.30%.

  • The ‘Gandhian Plan’ in 1944 was given by S. N. Agarwal.

  • Mixed Economy is existence of both public and private sectors in National Economy.

  • The most appropriate measure of an economic growth of a country is Per Capita Income.

  • Green revolution was introduced in Third Five Year Plan of India.

  • The Green Revolution in India was a period when agriculture in India increased due to improved method & technology. The Green Revolution allowed developing countries, like India, to overcome poor agricultural productivity. It started in India in the early 1960s.

  • The father of ‘Utilitarian School of Thought’ is Bentham.

  • Devaluation is majorly done to encourage export.

  • Devaluation is a deliberate downward adjustment to the value of a country’s currency relative to another currency, group of currencies or standard.

  • Foreign investment is known by FDI (Foreign Direct Investment) in India.

  • A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.

  • The full form of NNP is Net National Product.

  • Net national product (NNP) refers to gross national product (GNP), i.e. the total market value of all final goods and services produced by the factors of production of a country or other Polity during a given time period, minus depreciation.

  • Inclusive Growth’ was the objective of Eleventh Five Year Plan.

  • Inclusive growth means economic growth that creates employment opportunities and helps in reducing poverty. It means having access to essential services in health and education by the poor.

  • The Green steel plants of Bhilai, Durgapur and Rourkela were established under Second Five Year Plan.

  • The prime reason for inflation is increase in money supply.

SSC CGL Economy – Points:

  • Inflation is a sustained increase in the general price level of goods and services in an Economy over a period of time.

  • Disposable Personal Income is Personal Income – Direct Taxes.

  • Disposable income, also known as disposable personal income (DPI), is the amount of money that households have available for spending and saving after income taxes have been accounted for.

  • The full form of CRR is Cash Reserve Ratio.

  • CRR is the percentage of cash deposits that banks need to keep with the Reserve Bank of India on a fortnightly basis. Presently the CRR is 4% that is, for every Rs 100 deposited in the bank; bank will need to deposit Rs 4 with RBI.

  • Marginal Rate of Substitution is used to measure slope of indifferences curve.

  • Food For Work Programme’ was introduced at time of Tenth Five Year Plan.

  • Cloth industry comes under secondary sector of Indian Economy.

  • The secondary sector include industries that produce a finished, usable product or are involved in construction.

  • In capitalist economic system, the goods produced are distributed among people not on the basis of what people need but on the basis of Purchasing Power.

  • Income tax is an example of progressive tax.

  • New Economic Policy’ was announced in India in 1991.

  • Sugar Industry comes under secondary sector of Indian Economy.

  • The secondary sector include industries that produce a finished, usable product or are involved in construction.

  • Unorganized sector is characterised by small and scattered units which are largely outside the control of the government.

  • Unorganized Sector as consisting of all unincorporated private enterprises owned by individuals or households engaged in the sale or production of goods and services operated on a proprietary or partnership basis and with less than ten total workers.

  • Educated unemployment is a kind of unemployment generally found in urban areas.

  • Bank Rate in India is decided by Reserve Bank of India.

  • The bank rate, also known as the discount rate, is the rate of interest charged by the RBI for providing funds or loans to the banking system.

  • Current minimum saving deposit rate in India is 4.00% per annum.

SSC CGL Economy – Points:

  • Economic Survey of India is conducted by Ministry of Finance.

  • The government decides what goods are to be produced in accordance with the needs of society in socialist economic system.

  • 1 Rupee note bears the signature of Finance Secretary of India.

  • Eighth Five Year Plan recognized human development as the core of all development efforts.

  • The first Indian Prime Minister, Jawaharlal Nehru presented the First Five-Year Plan to the Parliament of India and needed urgent attention. The First Fiveyear Plan was launched in 1951 which mainly focused in development of the primary sector.

  • The minimum base rate fixed by RBI is 9.3%.

  • There are 22 public sector banks in India.

  • The manufacturing industries that aggregate, pack, package, purify or process the raw materials close to the primary producers are normally considered part of this sector, especially if the raw material is unsuitable for sale or difficult to transport long distances.

  • Seasonal unemployment is kind of unemployment when people are not able to find jobs during some months of the year.

  • Organised sector covers those enterprises (or) places of work where the terms of employment are regular.

  • Reserve Bank of India borrows money from commercial banks at the rate of Reverse Repo Rate.

  • Movement along the supply curve is known as expansion and contraction of supply.

  • Law of demand fails in the case of giffen goods.

  • A giffen good is typically an inferior product that does not have easily available substitutes.

  • Forms of Market and number of sellers and buyers.

    • Form of Market Number of sellers and buyers
      Oligopoly A few big sellers and a large number of buyers
      Monopoly One seller but large number of buyers
      Perfect Competition Large number of sellers and buyers

  • The market demand curve represents the demand of all consumers in the market taken together at different levels of the price of the good.

  • The market structure called monopoly exists where there is exactly one seller in any market.

  • For a price taking firm, average revenue is equal to market price.

  • The study of individual markets of demand and supply in which the ‘players‘, or the decision makers, were also individuals (buyers or sellers, even companies) who were seen as trying to maximize their profits (as producers or sellers) and their personal satisfaction or welfare levels (as consumers) is called Microeconomics.

SSC CGL Economy – Points:

  • Buffer stock is the component of Food Security System.

  • The accepted average Calorie requirement for rural areas in India is 2400.

  • Neo-Malthusian Theory’ is associated with resource scarcity.

  • Suitable match between sectors and their examples.

    • Sector Example
      Tertiary Consultancy
      Primary Apiculture
      Secondary Shoe Factory

  • The Entrepreneurship Development Scheme (EDS) has been launched under New Economy Development Policy (NEDP) on January \({19}^{th}\), 2017 at Mizoram.

  • The decision regarding the savings and loan activities in a Self Help Group (SHG) was taken by members of group.

  • Coal India Limited (CIL), Steel Authority of India.

  • Limited (SAIL) and Bharat Heavy Electricals Limited (BHEL) are in the list of Maharatna.

  • There are 8 companies in the list of Maharatna. Other 5 companies are Bharat Petroleum Corporation Limited, National Thermal Power Corporation, Oil and Natural Gas Corporation, Indian Oil Corporation Limited and Gas Authority of India Limited.

  • The \({7}^{th}\) pay commission has retained the rate of annual increment of 3%.

  • The ‘General Equilibrium Theory’ was given by Leon Walras.

  • Demand Draft:
    • i. Is a negotiable instrument.
      ii. Is a banker’s cheque.
      iii. Is issued by a bank.

  • Member of BRICS association are Brazil, Russia, India, China and South Africa.

  • Disguised unemployment is also known as underemployment.

  • Disguised unemployment exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero.

  • When there is only one buyer and one seller of product, it is called bilateral monopoly situation.

  • The National Commercial Banks sponsors Regional Rural Banks (RRB’s).

  • Union Cabinet approves amendments in M-SIPS to attract investment in electronics manufacturing. The full form of M-SIPS is Modified Special Incentive Package Scheme.

  • The accounts under Balance of Payment are Current Account, Capital Account and Unilateral Payments Account.

SSC CGL Economy – Points:

  • A market or industry is denominated by a few firms in oligopoly market form.

  • The components of monetary policy in India are repo rate, Reverse Repo Rate, Bank Rate, SLR, CRR etc.

  • The instruments of credit control in India are rationing of credit; Direct Action; and Open Market operations.

  • An example of micro-economic variable is Consumer’s Equilibrium.

  • The Prime Lending Rate is charged by banks to their most credit worthy customers.

  • Medium term loans are provided for a period of one (1) year to three (3) years.

  • An economic system combining private and state enterprise is called as mixed Economy.

  • The main motive of Third Five Year Plan in India was agriculture.

  • Courier service comes under tertiary sector.

  • The direct taxes are income tax, wealth tax and corporate tax.

  • Revolutions and their related purpose.

    • Revolution Purpose
      Golden Revolution Fruits production
      Blue Revolution Fish production
      Yellow Revolution Oil seeds production

  • MTNL comes under Navratna category.

  • Countries and their currency.

    • Country Currency
      Bangladesh Taka
      Myanmar Kyat
      Maldives Rufiyaa
      Bhutan Ngultrum

  • The instruments of fiscal policy are taxation, public expenditure and public debt.

  • Suitable equations are:
    • i. NI = NDP + Net Foreign Income
      ii. GNP = GDP + Net Foreign Income
      iii. NDP = GDP – Depreciation

  • Ratio of nominal to real GDP is called GD Deflator.

  • Reserve Bank of India monitors the banks in actually maintaining cash balance.

  • Indifference curve represents satisfaction derived from two goods.

SSC CGL Economy – Points:

  • The Rolling Plan’ was implemented after fifth five year plan.

  • The meaning of the Rolling Plan was that now, every year the performance of the plan will be assessed and a new plan will be made next year based upon this assessment.

  • Indirect tax causes a burden on the poorer section of the society.

  • A firm does not exercise control over price in Perfect Competition.

  • Income Distribution is represented by ‘Lorenz Curve’.

  • In a centrally planned Economy, the Government plans all the important activities in the Economy.

  • Law of diminishing marginal product says that if we keep increasing the employment of an input, with other inputs fixed, eventually a point will be reached after which the resulting addition to output (i.e., marginal product of that input) will start falling.

  • The real exchange rate is the relative price of foreign goods in terms of domestic goods.

  • Isoquant is an alternative way of representing the production function.

  • In a market system, the central problems regarding how much and what to produce are solved through the coordination of economic activities brought about by price signals.

  • Law of variable proportions says that the marginal product of a factor input initially rises with its employment level. But after reaching a certain level of employment, it starts falling.

  • The closest example of a centrally planned Economy is the Soviet Union for the major part of the 20th century.

  • The relationship between the variable input and output, keeping all other inputs are held constant is total product.

  • The GDP of a country are derived from agricultural sector, industrial sector and service sector.

  • Isoquant is the set of all possible combinations of the two inputs that yield the same maximum possible level of output.

  • The nominal exchange rate is the price of one unit of foreign currency in terms of domestic currency.

  • Marginal product of an input is defined as the change in input per unit of change in the input when all other inputs are held constant.

  • The parts of the South Asian Free Trade Area are Sri Lanka, Bhutan and India.

  • The South Asian Free Trade Area (SAFTA) is an agreement reached on \({6}^{th}\) January 2004 at the \({12}^{th}\) SAARC summit in Islamabad, Pakistan. It created a free trade area of 1.6 billion people in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

  • The collection of all possible combinations of the goods and services that can be produced from a given amount of resources ad a given stock of technological knowledge is called the Production Possibility Set of the Economy.

SSC CGL Economy – Points:

  • If at a price, market supply is greater than market demand, we say that there are excess supply in the market at that price.

  • In India the reform policies were first introduced in 1991.

  • The production function of a firm is a relationship between inputs used and output produced by the firm.

  • A Current Account deficit is financed by net capital flows from the rest of the world, thus by a capital account surplus.

  • Average product is defined as the output per unit of variable input.

  • SAARC Agriculture Center (SAC) is based in Dhaka.

  • SAARC Agriculture centre (SAC) has organized a SAARC Regional consultation on ‘Farm-made feeds for sustainable aquaculture development in South Asia: opportunities, challenges and policy intervention’ in Kathmandu, Nepal during \({10}^{th}\) – \({12}^{th}\) October 2017.

  • The demand for a normal good increase with increase in the consumer’s income.

  • Short run marginal cost curve cuts the average variable cost curve from below at the minimum point of average variable cost.

  • A commodity market has a monopoly structure, if there is one seller of the commodity, the commodity has no substitute, and entry into the industry by another firm is prevented.

  • The short run average cost curve is U shaped.

  • IMF has predicted that the global Economy would grow at 3.5% in 2017.

  • If the monopoly firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the marginal revenue is zero.

  • The demand for inferior good decreases with increase in the consumer’s income.

  • Goods for which the quantity that a consumer chooses, increases as the consumer’s income increases and decreases as the income decreases are called normal goods.

  • If the Perfect Competition firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the average revenue is zero.

  • The average variable cost curve is U shaped.

  • The Current Account balance is the sum of balance of merchandise trade, services and net transfer received from the rest of the world.

  • The relation between the consumer’s optimal choice of the quantity of a good and its price is very important and this relation is called the demand.

  • The demand for normal good decreases with decrease in the consumer’s income.

SSC CGL Economy – Points:

  • Short run marginal cost curves cuts the short run average cost curve from below at the minimum point of short run average cost.

  • The Capital Account balance is equal to capital flows from the rest of the world, minus capital flows to the rest of the world.

  • A capital account shows the net change in physical or financial asset ownership for a nation and, together with the current account, constitutes a nation’s balance of payments.

  • If a consumer’s demand for a good moves in the same direction as the consumer’s income, the consumer’s demand for that good must be inversely related to the rice of the good is called law of demand.

  • India’s first official census operation was undertaken in 1881.

  • The decennial Census of India has been conducted 15 times, as of 2011. While has been conducted every 10 years, beginning in 1872, the first complete census was taken in the year 1881.

  • The change in the optimal quantity of a good when its price changes and the consumer’s income is adjusted so that she can just buy the bundle that she was buying before the price change is called substitution effect.

  • The marginal product curve is inverse U shaped.

  • Goods which are consumed together are called complementary goods.

  • A complementary good or complement is a good with a negative cross elasticity of demand, in contrast to a substitute good. This means a good’s demand is increased when the price of another good is decreased.

  • Preliminary expenses are the example of deferred revenue expenditure. Deferred revenue expenses are those expenses, the benefit of which can be extended to a number of years say, 3 to 5 years — (as per revised schedule VI).

  • Capital expenditure is the money a company spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land.

  • Bee-keeping economic activity can be included in primary sector but few examples of economic activities which can be included in tertiary sector are:
    • i. working in a call-centre
      ii. tuition occupation
      iii. banking

  • Most of assets is owned by government in Public Sector Unit.

  • India’s population is equivalent to 17.74% of the total world population based on the 2017 census.

  • Eighth five year plan of India recognized human development as the core of development efforts.

  • Eighth Five Year Plan of India runs through the period from 1992 to1997 with the main aim of attaining objectives like modernization of the industrial sector, rise in the employment level, poverty reduction, and self-reliance on domestic resources.

  • Income and Expenditure Account is Capital Account.

  • A capital account shows the net change in physical or financial asset ownership for a nation and, together with the current account, constitutes a nation’s balance of payments.

  • Commodity or product differentiation is found in Imperfect Competition Market.

SSC CGL Economy – Points:

  • Imperfect competition is a type of market structure showing some but not all features of competitive markets. Forms of imperfect competition includes are Monopolistic competition, Monopoly, Oligopoly, Monopsony and Oligopsony.

  • The economist who for the first time scientifically determined National Income in India was V.K.R.V. Rao.

  • Interest payment, grants to states and subsidy are the part of the non-plan expenditure of central government but electrification is not a part of non-plan expenditure of central government.

  • The BRICS bank is presently known by the name of New Development Bank (NDB).

  • Parallel economy means Black Money.

  • RBI implements monetary policy in India.

  • The ARDC is a branch of the NABARD. The full form of ARDC is Agricultural Refinance and Development Corporation.

  • Labour Court, Industrial Tribunal and Work Committee are the part of machinery that settles industrial disputes.

  • PFRDA regulates NPS.

  • Depreciation is fixed assets is an example of capital expenditure.

  • The features of monopolistic competition are:
    • i. large number of buyers and sellers in the market
      ii. differentiated products constitute the market
      iii. selling costs
      iv. less mobility

  • The maximum loan amount permissible under the MUDRA Yojana is Rs. 10 lakh.

  • Pradhan Mantri Mudra Yojana (PMMY) aims to provide formal access of financial facilities to noncorporates, small businesses.

  • As per a latest classification of countries by the World Bank India now belongs to category of lower-middle income country.

  • GDP is an indicator of the financial health of a country.

  • When workers move from one job to another job it is known as Frictional Unemployment.

  • Debtor is most benefited from inflation.

  • Lakdawala Committee’s recommendations are being followed for estimating Poverty Line in India.

  • The decimal system of currency was introduced in India in 1957.

  • Brick market can usually be kept in local market.

SSC CGL Economy – Points:

  • Expenditure on machines is a fixed cost.

  • Entertainment tax on cinema is paid by audience.

  • National Telecom policy was announced in 2012.

  • HDFC Bank was declared a domestic–systematically important bank (D–SIB) by the Reserve Bank of India on September 4, 2017.

  • In a period of inflation and price rise the supply of money increases.

  • John Locke is related with ‘Labour Theory of Property’.

  • India’s first “Global Telecom City” in Bengaluru.

  • According the World Bank, the approximate land utilization percentage of India for agriculture purposes was 60%.

  • Our Census, Our Future was used as the motto for Census of India 2011.

  • Bull’ and ‘Bear’ are associated with Share Market.

  • The meaning of ‘Take off stage’ in an economy is stage of growth.

  • N K Singh has been appointed as the Chairman of 15th Finance Commission.

  • The largest share of deficit in budget of India is fiscal deficit.

  • Trade is not a component of fiscal policy but public expenditure, public debts and taxation are the components of fiscal policy.

  • Identical price is the characteristic of full competition market.

SSC CGL Economy – Points:

  • Parallel economy emerges due to Tax Evasion.

  • The net area under crops sown in India is approximately 14 crore hectares.

  • Micro, Small and Medium Enterprises Development Act (MSMED) was passed in 2006.

  • As per Census of India–2011, the highest population has recorded in Delhi and Mumbai cities.

  • DD is called a ‘banker’s cheque’.

  • The place where bankers meet and settle their mutual claims and accounts is known as Clearing House.

  • Finance Ministry formulates fiscal policy.

  • The Zero Base Budgeting in India was first experimented from 1987.

  • In economic terms, the factors determine the ‘Individual’s demand’ of a product/commodity are:
    • i. price of a commodity
      ii. income of the consumer
      iii. taste and Preference of consumer

  • The exponent of general principles of pricing is Marshall.

  • Bihar, Rajasthan, Assam, Manipur and Nagaland have regional rural bank whereas Sikkim and Goa do not have any regional rural bank.

  • The short term government securities is called treasury bills.

  • The first industrial policy of the Government of India was announced at April 6, 1948.

  • Services of a housewife are not taken into account to estimate national income but few sources, which are taken into account to estimate national income are:
    • i. services of a personal secretary
      ii. services of a car driver
      iii. services of a tourist guide

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