KSEAB SSLC JTS Economics key terms

The branch of economics that studies individual units such as a single consumer, household, firm, or market, focusing on how prices and quantities are decided there.

The branch of economics that studies the economy as a whole, dealing with aggregates such as total output, general price level, employment, and national income.

The value of the next best alternative given up when a choice is made, measured by the benefit that could have been obtained from the option not chosen.

The condition in which resources are limited in supply relative to the unlimited wants of people, forcing choices about what, how, and for whom to produce.

A curve showing the maximum combinations of two goods an economy can produce with its given resources and technology, illustrating scarcity, choice, and opportunity cost.

The total money value of all final goods and services produced by a country's normal residents during a year, measured at market prices or factor cost.

The market value of all final goods and services produced within a country's domestic territory during a given period, regardless of who owns the factors of production.

The market value of all final goods and services produced by the normal residents of a country in a year, including net factor income earned from abroad.

The difference between factor income earned by a country's residents from abroad and factor income paid to foreigners for work or capital within the country.

National income proper: GNP at market prices minus depreciation, minus indirect taxes, plus subsidies, so that it measures earnings of the factors of production.

A method of measuring national income by adding the value added at each stage of production, that is, the difference between the value of output and intermediate consumption.

The error of including the value of intermediate goods more than once while measuring national income, which overstates the true value of output.

Goods and services that are used up entirely within the same year as inputs for producing other goods, and are therefore excluded from national income.

Anything that is generally accepted as a medium of exchange, a measure of value, a store of value, and a standard of deferred payment in an economy.

Money that by law must be accepted for the settlement of debts within a country; in India this covers currency notes and coins issued by the monetary authority.

The apex monetary institution of a country, in India the Reserve Bank of India, which issues currency, controls credit, and acts as banker to government and banks.

A financial institution that accepts deposits from the public, lends money to borrowers, and creates credit through the process of deposit multiplication.

The use of instruments such as bank rate, cash reserve ratio, repo rate, and open market operations by the central bank to regulate the volume of credit in the economy.

The rate at which the central bank lends short-term funds to commercial banks against approved securities, used as a key policy tool to influence liquidity.

The branch of economics concerned with the income and expenditure of government, including taxation, public borrowing, and the management of public funds.

A tax whose burden cannot be shifted to another person, such as income tax or wealth tax, and which is levied directly on the income or property of a taxpayer.

A tax levied on goods and services whose burden can be passed on to the final consumer through higher prices, for example GST or excise duty.

The excess of the government's total expenditure over its total receipts excluding borrowings, indicating the amount the government must borrow to meet its spending.

An annual statement of the estimated receipts and expenditure of the government for the coming financial year, presented to the legislature for approval.

Government spending that does not create a new asset or reduce a liability, such as salaries, pensions, and interest payments, and is recurring in nature.

Government spending that either creates a new asset, like building a road, or reduces a liability, like repaying loans, and adds to productive capacity.

A destination-based indirect tax levied on the supply of goods and services in India, replacing many earlier taxes such as VAT and service tax.

A strategy of raising farm output in India through high-yielding seed varieties, chemical fertilisers, irrigation, and mechanisation, especially for wheat and rice.

A situation in which all people at all times have physical and economic access to sufficient, safe, and nutritious food to meet their dietary needs.

A government network of fair price shops that supplies subsidised food grains, mainly rice and wheat, to poor households holding ration cards.

Loans given to farmers by banks, cooperative societies, or regional rural banks for buying seeds, fertilisers, and equipment, or for irrigation and land development.

The basic physical and organisational facilities such as roads, railways, power, water supply, and communication networks on which other economic activity depends.

Government measures that influence the location, growth, and structure of industries, through licensing, incentives, subsidies, and special economic zones.

The economic benefit that arises when a country has a large share of working-age population relative to dependents, boosting production and savings.

A composite measure combining life expectancy, education, and per capita income to rank countries by average achievement in human development.

A minimum level of consumption expenditure or income needed to meet basic needs, used to count the number of people living in poverty.

The rate at which a country's population increases or decreases in a year, usually expressed as a percentage of the population at the start of the period.

The growing integration of national economies through trade in goods and services, movement of capital, technology, and labour across international borders.

A systematic record of all economic transactions between a country's residents and the rest of the world during a year, on current and capital accounts.

An international body established in 1995 that sets rules for trade between countries, settles trade disputes, and promotes reduction of trade barriers.

Development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs.

Natural resources such as sunlight, wind, and water that are replenished by natural processes within a short span and can be used without being exhausted.

The addition of harmful substances or energy to air, water, or land beyond natural levels, damaging health, ecosystems, and the productivity of resources.

A consumer's knowledge of rights, product quality, prices, and legal remedies, which helps in making informed choices and avoiding exploitation by sellers.

A law in India, enacted in 1986 and replaced by the 2019 Act, that safeguards consumers against defective goods and deficient services and provides redressal machinery.