KSEAB SSLC JTS Economics flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Opportunity cost

The value of the next best alternative foregone when a choice is made. Because resources are scarce, every decision to produce or consume one thing means giving up another.

Production possibility frontier

A curve showing maximum combinations of two goods an economy can produce with given resources and technology. Points on the curve are efficient, inside are inefficient, outside are unattainable.

GDP

Gross Domestic Product is the money value of all final goods and services produced within a country's domestic territory in a year, excluding intermediate goods to avoid double counting.

GNP

Gross National Product equals GDP plus net factor income from abroad. It measures income earned by a country's residents, whether production occurs at home or abroad.

Value added

The difference between the value of output and intermediate consumption. Summing value added across all firms gives GDP without double counting intermediate goods.

GDP deflator

A price index calculated as nominal GDP divided by real GDP, multiplied by 100. It measures the change in the general price level of all goods and services produced.

Money supply M1

M1 equals currency with the public plus demand deposits plus other deposits with the RBI. It is the most liquid measure of money and is called narrow money.

Repo rate

The rate at which the RBI lends short-term funds to commercial banks against government securities. Raising it reduces liquidity and inflation; lowering it stimulates credit.

Credit creation

Commercial banks create deposits by lending a fraction of their deposits. Total deposits equal primary deposits times one divided by the reserve ratio.

Fiscal deficit

Total government expenditure minus total receipts excluding borrowings. It shows the government's borrowing requirement and is financed mainly through market borrowings.

Revenue deficit

Revenue expenditure minus revenue receipts. It indicates that current spending exceeds current income and that the government borrows even for consumption purposes.

Direct tax

A tax whose burden cannot be shifted to another person, such as income tax or corporate tax. It is usually progressive, with higher incomes paying higher rates.

GST

Goods and Services Tax, introduced in India on 1 July 2017, is a destination-based value-added tax on goods and services, shared between the Centre and States.

Green Revolution

A strategy from the mid-1960s using high-yielding variety seeds, irrigation, fertilisers and credit to raise wheat and rice output. It increased food security but widened regional disparities.

MSP

Minimum Support Price is the price at which the government buys crops from farmers to protect them from a price crash. It is recommended by the CACP for major crops.

NABARD

National Bank for Agriculture and Rural Development, established in 1982, is the apex institution for refinancing agricultural and rural credit through cooperatives, RRBs and commercial banks.

MGNREGA

Mahatma Gandhi National Rural Employment Guarantee Act 2005 guarantees at least 100 days of unskilled wage employment per rural household per year, strengthening rural purchasing power.

MSME

Micro, Small and Medium Enterprises are classified by investment and turnover. They contribute about 30% of GDP and around 45% of exports and employ a large workforce.

Make in India

A 2014 initiative to promote manufacturing in India by easing regulation, attracting foreign investment and improving infrastructure, aiming to raise industry's share of GDP.

Public-private partnership

An arrangement where government and private firms share the cost, risk and operation of infrastructure projects. Build-Operate-Transfer (BOT) is a common model.

Demographic dividend

The economic advantage from a rising share of working-age population. It raises output only if sufficient jobs, skills and health care exist for the youth.

Human Development Index

A UNDP composite index combining life expectancy, education (mean and expected years of schooling) and GNI per capita, using a geometric mean to rank countries.

Sex ratio

The number of females per 1000 males in a population. Census 2011 recorded 943 for India, an indicator of gender equity and social development.

Karnataka IT hub

Bengaluru, the capital of Karnataka, is called the Silicon Valley of India because of its concentration of software, biotechnology and start-up firms, which drive services exports.

Karnataka coffee

Karnataka is India's largest coffee producer, mainly from Kodagu, Chikkamagaluru and Hassan. Coffee is a major plantation crop and export earner for the state.

Karnataka regional disparity

The gap in income and human development between Bengaluru and some northern districts. Drought, low industrialisation and poor infrastructure explain much of the difference.

Balance of payments

A systematic record of all economic transactions between residents of a country and the rest of the world in a year, comprising current and capital accounts.

WTO

The World Trade Organization, established in 1995 to replace GATT, regulates international trade, settles disputes and promotes liberalisation. India is a founding member.

FDI

Foreign Direct Investment is investment by a foreign firm in productive assets or equity giving control. It brings long-term capital, technology and management skills.

Sustainable development

Development that meets present needs without compromising the ability of future generations to meet theirs, as defined by the Brundtland Report in 1987.

SDGs

The 17 Sustainable Development Goals adopted by the UN in 2015 with a 2030 target, covering poverty, health, education, environment, and peaceful institutions.

Consumer Protection Act 2019

An Indian law that protects consumers, established the Central Consumer Protection Authority, covers e-commerce, and provides District, State and National redressal commissions.