The Indian economy consists of all the production units or institutions such as farms, factories, workshops, railways, hospitals, schools and banks. The Indian economy can be broadly classified into three sectors: Sectors of the Indian Economy Primary sector of the Indian Economy This sector consists of agriculture and various allied activities such as dairy, poultry, …
When the planned expenditure of the government exceeds its total revenue, the government needs to borrow money from individuals and organizations. This is called public debt.
Professor Dalton defined public finance as being connected with the income and expenditure of public authorities, with the adjustment of one to another. Tax revenue and non-tax revenue are the two sources of income.
Demand for a good refers to the desire to buy a good backed with sufficient purchasing power and the willingness to spend. Individual demand for a commodity is the quantity of a commodity which an individual household is willing to buy at a particular price during a specific period.
Consumers’ consciousness towards their rights and duties is known as consumer awareness. Consumers should be aware of their rights to ensure proper standards of goods and services they purchase.
Inflation is a sustained increase in the aggregate price levels. It refers to a state of rising prices and not a state of high prices. The types of inflation observed in an economy depend on the rate of increase in the price levels
Public expenditure is the expenditure incurred by the government of any nation. Any government incurs a large amount of expenditure for the welfare of the nation, for activities such as the development of roadways, education, irrigation systems and to maintain law and order.
The supply of a commodity is the quantity of the commodity which producers desire to sell to consumers. Thus, it is a desired flow. It indicates how much firms are willing to sell per period of time and not how much they actually sell.
Factors which are used to carry out the process of production are called factors of production. In the modern economy, economists classified these factors into two categories.
A Central Bank is the apex bank which controls the entire banking system of a country. It has the sole
authority to issue notes in that country. It also acts as a banker to the government and controls the supply of money in the country.