(i) On the supply side, the low level of real income means low savings.
(ii) The low level of saving leads to low investment and to deficiency of capital.
(iii) The deficiency of capital, in turn, leads to low levels of productivity and back to low income.
(iv) Low Income ⟶ Low Saving ⟶ Low Investment ⟶ Low Production ⟶  Low Income

i. Statistics Regression: Yi = β0 + β1Xi
ii. Econometrics Regression: Yi = β0 + β1Xi +  Ui

S.No	Descriptive Statistics	Inferential Statistics
1	It describes the population under study	It draws the conclusion for the population-based on the sample result.
2	It presents the data in a meaningful way through charts, diagrams, graphs, other than describing in words	It uses hypotheses, testing and predicting on the basis of the outcome
3	It gives the summary of data	It tries to understand the population beyond the sample.

1. In Medical sciences, statistical tools are widely used.
2. In order to test the efficiency of a new drug or to compare the efficiency of two drugs or two medicines, t - test for the two samples is used.
3. More and more applications of statistics are at present used in clinical investigation.

When some residents of a locality hire a private security agency to patrol their area, the other residents of the area also benefit from better security without bearing cost

Direct Tax:
(i) A direct tax is a tax which levied on person's income and wealth.
(ii) It is paid directly to the government.

(i) Economic development was redefined in terms of reduction of poverty, 'inequality' and unemployment within the context of the growing economy.
(ii) During this period redistribution with growth became the popular slogan.

(i) An ecosystem includes all living things (plants, animals and organisms) in a given area, interacting with each other and also with their non-living environments (weather, earth, sun, soil, climate, atmosphere).
(ii) It is the foundation of the Biosphere and determine the health of the earth.

(i) It involves fresh evaluation of expenditure in the Government budget assuming it as a new item.
(ii) A review is made to justify the project based on the socio-economic objectives and priorities of the society.
(iii) Government of India presented Zero Base Budgeting in 1987-88.

The SAARC Secretariat was established in Kathmandu (Nepal) on 16^th January 1987.

(i) To accelerate the economic growth, social progress and cultural development in the region.
(ii) To promote regional peace and stability and adherence to the principles of the UN Charter.

(i) The balance between the values of goods and services exchanged between two countries.
(ii) It is a trade in both visible and non visible items.

(i) Availability of variety of goods for consumption.
(ii) Generation of more employment.
(iii) Industrialization of backward nations.
(iv) Division of labour and specialisation.

(i) It aims to control and regulate the purposes for which credit is granted by commercial banks.
(ii) It is of 2 types: variable portfolio ceiling and variable capital asset ratio

(i) Central bank is the monetary authority that manages a state's currency, money supply, and interest rate
(ii) It oversees the commercial banking system

(i) "Too much of Money chasing too few goods" - Coulbourn
(ii) "A state of abnormal increase in the quantity of purchasing power" - Gregorye

(i) Surplus goods were exchanged for money which in turn was exchanged for other needed goods.
(ii) Goods like furs, skins, salt, rice, wheat, utensils, weapons were used as money

Muliplier is the ratio of the change in national income to change in Investment.
K = \(\frac{ΔY}{ΔI}\)

It is the proportion of total income that the consumers save rather the spend on goods.

(i) Aggregate (desired) consumption expenditure (C)
(ii) Aggregate (desired) private savings (S)
(iii) Net tax payments (T)
(iv) Personal (desired) transfer payments to the foreigners (Rf)
AS = C + S + T + Rf

(i) "Full employment is the absence of involuntary unemployment." - Keynes
(ii) "Full employment is that level of employment at which any further increase in spending would result in an inflationary spiral of wages and prices" - Lerner

GDP deflator is an index of price changes of goods and services included in GDP.
\(\text{GDP deflator}=\frac { Nominal\ GDP }{ Real\ GDP } \times 100\)

\(\mathrm{GNP}=\mathrm{C}+\mathrm{I}+\mathrm{G}+(\mathrm{X}-\mathrm{M})+(\mathrm{R}-\mathrm{P})\) or \(\mathrm{GNP}_{\mathrm{MP}}=\mathrm{GDP}_{\mathrm{MP}}\) + Net Factor income from Abroad.

(i) Capitalism is a system where the means of production are privately owned.
(ii) Market determines the economic activities (e.g.) The USA, Japan.

(i) Inflation refers to steady increase in general price level.
(ii) The General price level is based on Wholesale Price Index, Consumer Price Index.