From the point of view of equity, the resources should be distributed among the different states so that each state receives a fair share of revenue.

Import duties levied on goods from outside the country, ultimately paid for by consumers and retailers.

(i) Industrial Finance Corporation of India (IFCI)
(ii) Industrial Credit and Investment Corporation of India (ICICI)
(iii) Industrial Development Bank of India (IDBI)

The basic aim of the organisation is to accelerate the process of economic and social development of member states through joint action in the agreed areas of cooperation

i. Agreement on Trade Related Intellectual Property Rights (TRIPs)
ii. Agreement on Trade Related Investment Measures (TRIMs)

1. Natural Resource
2. Capital Formation
3. Size of the Market
4. Structural Change
5. Financial System
6. Marketable surplus
7. Foreign Trade
8. Economic System

(i) Fiat money includes items that are designated as money that are intrinsically worthless.
(ii) Commodity money are things like gold or silver which have alternative uses other than money.
(iii) They can be used in dental fillings or as jewelry.

Fisher points out that in a country during any given period of time, the total quantity of money (MV) will be equal to the total value of all goods and services bought and sold (PT).
MV = PT
Supply of Money = Demand for Money
This equation is referred to as “Cash Transaction Equation”

i. According to Say‘s Law, full employment is maintained by an automatic and self adjustment mechanism in the long run.
ii. But Keynes had no patience to wait for the long period for he believed that – In the long run we are all dead.
iii. It is not the automatic adjustment process which removes unemployment.
iv. But unemployment can be removed by increase in the rate of investment.

i. Modern technology being capital intensive requires lesslabourers and contributes to technological unemployment.
ii. Now a days, invention and innovations lead to the adoption of new techniques there by the existing workers are retrenched

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

1. Statistics is necessary for the formulation of policies to start new course, according to the changing environment.
2. There are many educational institutions owned by public and private engaged in research and development work to test the past knowledge and evolve new knowledge.
3. These are possible only through statistics.

(i) Specialization is the basis of both, domestic as well as foreign trade.
(ii) Both have same requisites, viz., two parties, two commodities and determination of relative prices.
(iii) Gains or benefits, is the primary concern of the regions or nations involved in trade.

(i) The Physical Quality of Life Index PQLI is considered a better indicator of economic welfare.
(ii) It includes standard of living, life expectancy at birth and literacy.

i) difference in the endowments of factors of production between countries, and
ii) differences in the factor proportions required in production.

S = Y - C
Therefore,
S = Y - (200 + 0.8Y)
= -200 + 2Y

Y = C + S
Or
Y = C + I
Since,
C + S = C + I
S = I

(i) PC
(ii) Boilers
(iii) Mixer
(iv) Signal Generators
(v) Incubator

i. Subjective factors are the internal factors related to psychological feelings.
ii. According to Keynes, the subjective factors do not change in the short run and hence consumption function remains stable in the short period.

(i) The firm sector generates its revenue by selling goods and services to the household sector
(ii) It hires the factors of production, i.e., land, labour, capital and organisation, owned by the household sector.
(iii) The firm sector sells the entire output to households.

(i) Atmospheric noise.
(ii) Industrial Noise.
(iii) Man made noise.

i) IBRD is (International Bank for Reconstruction and Development) otherwise called as 'The World Bank'.
ii) It was established in 1945 under the Bretton Woods conference in 1944.

The word 'budget' is said to have its origin from the French word "Bougett" which refers to 'a small leather bag'. The budget is an annual financial statement which shows the estimated income and expenditure of the Government for the forthcoming financial year.

(i) Income and expenditure adjustment.
(ii) Borrowing.
(iii) Right to print currency.
(iv) Present vs Future decisions.
(v) Objective.
(vi) Coercion to get revenue.
(vii) Ability to make huge and deliberate changes.

(i) Imports may be controlled by imposing or enhancing import duties.
(ii) Restricting imports through import quotes.
(iii) Licensing and even prohibiting altogether the import of certain non essential items but this would encourage smuggling.

(i) Monetary and fiscal policy
(ii) Technological progress
(iii) Resource availability.

Capital gains arise when a capital asset such as a house, other property, stocks or shares, etc. is sold at higher price than was paid for it at the time of purchase. Capital gains are excluded from national income.

(i) Human resource
(ii) Technical Know - how
(iii) Political freedom

Aggregate supply = C + S + T + RF = Aggregate income generated in the economy

(i) Quantitative Method
(ii) Qualitative Method

(i) Increase in Money Supply.
(ii) Increase in Disposable Income
(iii) Increase in Public expenditure

i) Efficient use of Resources
ii) Automatic working
iii) Higher Rates of capital formation
iv) Development of new technology