Introduction Test - 28

The model assumes imports increase when output and incomes increase.

In general macroeconomic terms, both GDP and aggregate demand share the same equation:

GDP or AD = C + I + G + (X - M)

An increase in nominal GDP may just mean prices have increased, while an increase in real GDP definitely means output increased. The GDP deflator is a price index, which means it tracks the average prices of goods and services produced across all sectors of a nation's economy over time.

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, has approved USD 1.4 billion loans for sustainable development projects in China, India, and Russia.

The Earliest duopoly model was developed by the French economist Augustin Cournot in the year 1838. In his explanation, Cournot illustrates Duopoly model with an example of two firms A and B, each is producing mineral water at zero cost.

'Hallmark' is used as a logo on Jewellery.

The BIS hallmark is a hallmarking system for gold as well as silver jewellery sold in India. It is used to certify the purity of the metal and that the piece of jewellery conforms to a set of standards laid by the Bureau of Indian Standards, the national standards organization of India. India is the second biggest market for gold and its jewellery.

Tradingis a tertiary economic activity.

• The sector that helps in the development of the Primary and Secondary sectors through providing services.
• Transport, communication, banking, storage, trade, etc. all come under the Tertiary or service sector.
• However, it also includes services that doesn’t help directly in producing goods.

India’s wholesale price index (WPI)-based inflation fell to a four-month low of 1.31 percent on an annual basis in August from 2.04 per cent in July due to a reduction in the prices of manufactured products and food items, according to data released by the Ministry of Commerce and Industry.

Tax on import is a 'barrier' on foreign trade.Foreign trade requires the free tax facility or minimal tax charges, so that people can trade without any barrier. Tax on import is something which become barrier during foreign trade.

The concept of human development was introduced by Dr Mahbub-ul-Haq.

Dr Haq has described human development as development that enlarges people’s choices and improves their lives. People are central to all development under this concept. These choices are not fixed but keep on changing. The basic goal of development is to create conditions where people can live meaningful lives.

Indicators of human development index

1.life expectancy for health

2. expected years of schooling

3.Gross National Income per capita for standard of living

4.mean of years of schooling for education

Law of supply states that other factors remaining constant, price and quantity supplied of a good are directly related to each other. In other words, when the price paid by buyers for a good rise, then suppliers increase the supply of that good in the market.

The Law of supply establishes a direct relationship between price and supply.

Service sector is called tertiary sector.

The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sectors of the three-sector theory(also known as the economic cycle). The others are the secondary sector (approximately the same as manufacturing), and the primary sector(raw materials). The service sector consists of the production of services instead of end products. Services( also known as "intangible goods") include attention, advice, access, experience and affective labor. The production of information has been long regarded as a service, but some economists now attribute it to a fourth sector, the quaternary sector.

Hence the correct option is (C).