Economics Pointers

Annual revaluation method is useful for calculating depreciation of livestock in the early years.
Internal Rate of Return (IRR) indicates the earning power of a project over time.
Adam Smith is regarded as the Father of Economics and gave the wealth definition.
AGMARK is the symbol used for graded agricultural produce.
Elasticity is negative in the IIIrd stage of production.
When MPP > APP, then elasticity of production (Ep) > 1.
ICICI Bank was the first commercial bank to provide mobile ATM services.
The concept of Law of Diminishing Marginal Utility (LDMU) was given by H.H. Gossen.
Alfred Marshall gave the welfare definition of economics and authored Principles of Economics (1890).
In a perfect competition market, products sold are homogeneous.
Migration and Unemployment Theory was given by Harris and Todaro.
Odisha (1939) was the first state where multipurpose co-operative societies were established.
Hedging is the technique used to protect traders from extreme price falls.
B:C ratio means Gross return ÷ Total cost.
Labour in farm management is considered an active factor.
When demand is perfectly inelastic, Ep = 0.
When demand is unitary elastic, Ep = 1.
When MPP is maximum, APP < MPP.
Pricing efficiency is also referred to as allocative efficiency.
The apex organization of industrial finance in India is IDBI.
A market with few sellers is called an oligopoly market.
When demand is relatively inelastic, Ep < 1.
The agricultural census in India is conducted every 5 years.
Theory of Social Change was proposed by Hagen.
Consumer surplus is high when demand is less elastic.
As per RBI norms, 18% of Net Bank Credit must be deployed in agriculture.
Alfred Marshall’s Principles of Economics was published in 1890.
Economics of agriculture is known as agro-economics.
A unitary elastic demand implies Ep = 1.
Adam Smith’s Wealth of Nations formed the basis of economics as wealth.
Indian economy is classified as a mixed economy.
Microfinance management refers to finance at the farm level.
Non-material goods include services like those provided by a doctor to a patient.
The National Institute of Agricultural Marketing is located in Jaipur (1988).
The cost of moving products from production to consumption point is called marketing cost.
When MPP = 0, TPP is at its maximum.
The law of diminishing returns operates when one input is variable.
Packing is the first function performed in agricultural marketing.
Wage Fund Theory was proposed by J.S. Mill.
Open auction system is the most common method in regulated markets.
Isoquant refers to all combinations of two inputs that produce the same output level.
J.R. Hicks introduced the term social accounting in economics.
In India, marketed surplus is greater than the marketable surplus.
Market information is considered the lifeblood of a market.
Farm management falls under the scope of microeconomics.
J.S. Mill authored Principles of Political Economy and Questions on Unsettled Problems in Political Economy.
Capital and Growth and Theory of Wages were both contributed by J.R. Hicks.
The output method is used to calculate national income from agriculture.
Non-material goods include patents and copyrights.
The concept of supply creates its own demand was proposed by J.B. Say.
J.S. Mill contributed the Wage Fund Theory.
Variable cost is also known as prime cost, alternate cost, or overhead cost.
Joint demand is exemplified by products like milk, sugar, and tea.
The most common method in regulated agricultural markets is the open auction system.
Transferability of goods classification was given by Alfred Marshall.
At the convergence of isoclines, output is maximum and MR = 0.
The current farming system in India is market-oriented.
When APP < MPP, it refers to the first stage of production.
In a monopoly market, there is one seller of the product.
Microeconomics includes subjects like farm management.
Ragner Frisch (1933) coined the terms Microeconomics and Macroeconomics.
NABARD is the apex body for institutional finance in agriculture in India.
SBI's Farm Clinics initiative is a key feature in rural agricultural support.
Regulated markets ensure remunerative prices and are guided by rules and regulations.
FAO (Food and Agricultural Organisation) is headquartered in Rome, Italy.
Samuelson gave the growth definition of economics.
When APP is decreasing, it means MPP < APP.
Marginal utilization of resources is attained when MR = MC.
Relatively inelastic describes the price elasticity of demand for food.
The ridge line represents the isoclines.
The economics of imperfect competition was introduced by Mrs. Joan Robinson.
Wadi programme was launched by NABARD.
The excess of income over consumption is defined as saving.
All India Rural Credit Survey Committee was constituted by the RBI.
Marketable surplus is calculated using the formula MS = Production − Consumption.
PPC (Production Possibility Curve) moving away from the origin represents a higher production level.
First governor of RBI was Mr. Osborne A. Smith.
When TPP is decreasing, MPP is also decreasing.
Joan Robinson coined the term Monopsony.
Demand for luxury goods is generally more elastic.
NABARD is the apex institute for rural and agricultural credit.
AGMARK Central Laboratory is located in Nagpur (1937).
When resources are limited, the principle of equi-marginal returns is applied.
Decrease in demand means less demand at the same price.
Money supply in the economy is regulated by the RBI.
Demand for agricultural products tends to be relatively more inelastic.
The indifference curve level from the origin depends on the level of satisfaction.
Rome is the headquarters of FAO – Food and Agricultural Organization.
To achieve maximum profit, keep adding variable inputs until MR > MC.
A regulated market is one where business is conducted as per set rules.
The first stage of production function is considered irrational.
Gross income minus total expenses results in net income.
The GNP deflator is the ratio between nominal GNP and real GNP.
Giffen goods are analyzed from the perspective of income.
The International market is where buyers and sellers operate on a global scale.
Inflation refers to a rise in the general price level of goods and services.
Geneva (Switzerland) is the headquarters of the WTO – World Trade Organization.
A rise in income increases the percentage expenditure on luxurious commodities.
The change in capital stock in an economy is referred to as investment.
Farm business income is calculated as Gross return – Cost A1.
Standard money is also called full-bodied money.
The birthplace of the co-operative credit movement in the world is Germany.
Possession of livestock is an example of an intermediate asset.
Return on savings is termed as interest.
The measure of responsiveness of demand to income changes is called income elasticity.
Goods are defined as anything that can satisfy human wants.
Innovation profit is the profit earned by a monopoly firm.
The gestation period is the time gap between investment and return.
The Time Preference Theory of Interest was proposed by Irving Fisher.
Friendship is an example of a non-transferable external personal good.
An iso-cost line represents all input combinations purchasable with a given budget.
Macro economics is also known as income theory.
The percentage of goods purchased at various income levels is known as income demand.
Indifference curves are also called iso-utility curves.
National income from agriculture is calculated using the income and output method.
A devaluation of the rupee generally causes exports to increase.
Inflation also describes the erosion of money's purchasing power.
Internal goods include intelligence, skill, and ability.
Joint demand occurs when multiple goods are used together for a common purpose.
Production possibility curve is also known as an isofactor curve.
Petrol is commonly referred to as liquid gold.
Transportation in marketing creates place utility.
Per capita income is a better measure of economic development.
The net worth of a company is calculated as assets minus liabilities.
The difference between demand and supply of credit is known as the credit gap.
Composite demand refers to the demand for a commodity with several uses.
Crop loans are classified under current liabilities.
Cash on hand is considered a current asset.
The National Centre for Agricultural Economics and Policy Research is located in New Delhi.
Tilak Sangh in Rajasthan is a co-operative marketing society.
A fall in market price that leads to more buyer advantage indicates an increase in consumer surplus.
Elasticity of demand cannot be explained using correlation.
Complimentary wants arise when manufacturers use both machinery and labor.
The short period market is associated with perishable goods.
The co-operative joint farming system is a collective form of ownership and operation.
Monopoly markets often exist due to patents.
Retail markets are examples of perfect markets.
Capital in farm production is regarded as a passive factor.
Cross demand refers to the change in quantity demanded of one good in response to the price change of a related good.
The highest per capita income among farmers is observed in Punjab.
In perfectly inelastic supply, a large price change causes no change in supply quantity.
In a perfectly inelastic demand, the quantity demanded does not change regardless of price fluctuations.
Short-term credit is primarily given for crop production.
The market structure characterized by many firms selling differentiated products is known as perfect competition.
A great rise or fall in price without a corresponding demand change is described as perfectly inelastic demand.
A large number of buyers and sellers with perfect knowledge defines a perfect market.
A fall in demand due to a price rise is called contraction of demand.
David Ricardo is known for the subsistence theory of wages.
David Ricardo also proposed the theory of rent.
An example of non-transferable internal good is personality.
Quasi rent arises in the use of capital.
Wheat grain and straw are categorized as competitive products.
The “Indian Institute of Packaging” was established in 1966.
Share capital of RRBs is contributed by the Central Government (50%), State Government (15%), and Sponsored Bank (35%).
Complementary enterprises include crop farming and milk production.
The book “A Concept of Agribusiness” was written by Davis and Goldberg.
The Food Corporation of India (FCI) was established on 14th January 1965.
The Karanja Cotton Market, the first regulated market, was established in 1986.
The co-operative movement in India officially started in the year 1904.
The book “Wealth of Nations” was authored by Adam Smith.
AGMARK is the certification seal required for agricultural produce exports from India.
A market with a few sellers is known as an oligopoly market.
Dairy and wheat enterprises are examples of complementary products.
The Montague-Chelmsford reforms of 1919 made cooperation a state subject.
WTO (World Trade Organization) came into effect in 1995.
Wheat and dairy together represent complementary products.
“Pradhan Mantri Fasal Bima Yojana” was introduced on 18th February 2016.
A marginal farmer possesses land between 0.0021 to 1.00 hectares.
Degree certificates are an example of non-transferable external material goods.
Depreciation method is used to re-value farm buildings.
The Government of India signed the WTO agreement in 1994.
When Y1/Y2 substitution gives a positive value, the relationship is complementary.
The National Agricultural Insurance Scheme was launched in 1999.
The Central Warehouse Corporation (CWC) constructs large-scale warehouses across India.
The most limiting factor in Indian agriculture is capital.
Capital in Indian agriculture is often a limiting input.
The first Co-operative Society Act was passed in 1904.
The National Agricultural Cooperative Marketing Federation (NAFED) was established on 2nd October 1958.
The National Institute of Agricultural Marketing (NIAM) is located in Jaipur, Rajasthan, established in 1988.
After the inflection point, the Total Physical Product (TPP) curve continues to rise at a decreasing rate.
The first Nationalization of commercial banks in India took place in 1969.
The Lead Bank Scheme was introduced in 1969 based on the recommendation of F.K.F. Nariman Committee.
Diversified farming minimizes risk in agriculture.
The Agricultural Produce Act was passed in 1937.
The father of cooperative movement in India is F. Nicholson (1904).
The first land mortgage bank was started in Jhang, Punjab in 1920.
Land rent is considered a fixed cost.
The Karanja regulated market was the first regulated market in India.
One of the key fixed costs in farming is land rent.
Equilibrium price is where demand equals supply.
The law of equi-marginal utility governs consumer spending behavior.
The increase in supply due to a rise in price is termed as extension of supply.
Directorate of Marketing and Inspection was established in Faridabad in 1935.
Forward integration occurs when a wholesaler performs retail functions.
The term 'value' in economics generally refers to value in exchange.
The financial position of a farmer is shown through a balance sheet.
The initial utility in the marginal utility schedule arises from the first unit consumed.
Farm budgeting is a crucial element in farm management.
The National Cooperative Union of India (NCUI) was established in 1929.
The Multi-unit Cooperative Societies Act was passed in 1942.
The Bombay Cooperative Societies Act was enacted in 1925.
Sales tax is an example of an indirect tax.
Value Added Tax (VAT) is a form of indirect taxation.
Demand for necessary commodities, such as salt, is generally inelastic.
Agricultural products typically exhibit inelastic demand.
Inelastic demand refers to no change in quantity demanded despite price changes.
Giffen goods are a special case of inferior goods.
The demand for common salt is a classic example of inelastic demand.
National markets typically deal in durable goods.
The father of modern economics is Paul Samuelson.
District Credit Plan is prepared by the Lead Bank.
The cost of production of a crop can be minimized using the least cost combination principle.
The more we have of a thing, the less the desire for additional units (Law of Diminishing Marginal Utility).
The supply of land is perfectly limited.
The scarcity definition of economics was given by Lionel Robbins.
An essay on the nature and significance of economic science was written by Lionel Robbins (1931).
Finance provided by Land Development Bank is for long-term loans.
Social banking came into existence in 1969.
The Two-Tier Co-operative Credit Structure finances long-term loans.
The headquarter of SIDBI (Small Industries Development Bank of India) is located in Lucknow.
Partial payments in case of repayment plans are often lump sum.
The first crop loan was given to cotton at Berar, Maharashtra.
Maharashtra is the only state in India to provide industry status to agriculture.
The Theory of Population was given by Malthus.
Capital is an instrument of production, and it is man-made.
NAIS (National Agricultural Insurance Scheme) was introduced in Rabi 1999-2000.
The market in which permanent or durable commodities are traded is called a secular market.
Markets that are held for a longer period of time are termed as secular markets.
The stock exchange market deals with shares.
The Three-Tier Co-operative Credit Structure finances short and medium-term loans.
The distinction between fixed and variable costs exists only in the short run.
Keynes' theory is a theory of the short run.
The best use of land, better marketing, and better management are the features of specialized farming.
Food grain markets, vegetable markets, wool markets are examples of specialized markets.
The supply of money comes under the concept of stock concept.
Subsistence farming refers to farming for home consumption only.
When one enterprise neither adds nor hinders the production of another enterprise, the relationship is called supplementary.
The Principle of Equi-marginal Return is applied when the prices of resources are high.
The utility created by the storage function is time utility.
Storage function creates time utility.
When total product is increasing, marginal product will be positive.
Production in traditional agriculture does not respond to price changes.
The point of maximum satisfaction in consuming two commodities is when the slope of the indifference curve is tangent to the slope of the price line.
The difference between consumer's price and producer's price is called the price spread.
Microeconomics is also called price theory.
The cost of production of the crop can be minimized using the principle of least cost combination.
The input-output relationship is known as the production function.
The production possibility curve is also known as the production possibility frontier.
Appropriate agronomic practices reduce production risk.
The reward for entrepreneurial function is called profit.
The main objective of an agricultural farm is the maximization of profit and satisfaction.
Vaikunt Mehta Institute of Co-operative Management is located at Pune (1967).
Homogeneous product is characteristic of a pure oligopoly market.
AGMARK is related to quality.
The Residual Claimant Theory was proposed by R.A. Walker.
The Prevention of Food Adulteration Act was introduced in 1954.
The National Cooperative Development and Warehousing Board was established in 1956.
The Food Products Order Act was passed in 1956.
The Indian Companies Act was enacted in 1956.
The Central Warehousing Corporation was started in 1957.
The Pilot Crop Insurance Scheme was implemented in 1979 based on the area approach.
The unlimited supply of labor theory was given by Arthur Lewis.
Persons who expect that the price will go down in the future are called bears.
A market is a place where buying and selling take place.
The first Indian Governor of RBI was C.D. Deshmukh.
The demand for various kinds of labor and materials to make the final product is called derived demand.
Consumption means the destruction of utility.
Air is considered a free good.
Stage-1 of production is also called the stage of increasing return.
bi > 1 represents increasing returns to scale.
The word 'credit' is derived from the Latin word "Credo".
The more we have of a commodity, the less we want to have more of it, as explained by the Law of diminishing marginal utility.
The most important principle of farm management is governed by the Law of diminishing return.
The competitive nature of human wants has given us the Law of substitution.
The addition made to the total utility by consuming one more unit of a commodity is called marginal utility.
The Single Window system was recommended by Mohan Kanda.
For which type of market does there exist no supply curve? Monopoly.
When there is only one buyer of the product, the market is termed as monopsony market.
Indian Army is an example of national wealth.
The income elasticity of demand for Giffen goods is negative.
National Agricultural Cooperative Marketing Federation of India Limited was started in 1958.
The National Cooperative Development Corporation was established in 1963.
The Codex Alimentarius Commission (CAC) was established in 1963.
The Vegetable Oil Products Act was passed in 1975.
The CACP-Commission for Agricultural Cost & Price was established in 1965.
In case of DIR scheme, loans are advanced at the rate of 4% per annum.
In the three zones of production, Zone-I represents increasing return, Zone-II represents decreasing return, and Zone-III represents negative return.
If factors are perfect complements, the shape of the isoquant is point.
Levy price applies to traders.
Human wants are unlimited.
The want-satisfying quality of a good is called utility.
Fertilisers and seeds are examples of variable cost.
Agro-Economic Research Centre (AERC) is located at Visakhapatnam (AP).
Crop Insurance in India is voluntary.
In economics, any work done for earning money is called wages.
The concept of General Equilibrium was given by Walras.
Cash is considered working capital.
The National Agricultural Technology Project was funded by the World Bank.
Total utility is maximum when marginal utility is equal to zero.
When total utility is maximum, marginal utility is zero.
The DIR (Differential Rate of Interest) Scheme started based on the B. K. Hazare Committee recommendation appointed by RBI in 1975.
The Pilot Crop Insurance Scheme was introduced in 1979.
The 2nd Nationalisation of commercial banks was done in 1980.
The Comprehensive Crop Insurance Scheme was introduced in 1985.
The Nationalization of 6 major commercial banks with deposits of not less than 200 crore was done on 15th April 1980.
The RBI (Reserve Bank of India) came into existence on 1st April 1935 with the RBI Act 1934 and was nationalized on 1st January 1949.
The financial year is from 1st April to 31st March.
The First Five Year Plan started on 1st April 1951.
The Export-Import Bank of India was set up on 1st January 1982.
The SBI (State Bank of India) came into existence on 1st July 1955.
The agriculture year is from 1st June to 31st May.
Under the Single Window System, Cooperative marketing is under a 2-tier structure.
RRB (Regional Rural Bank) was established on 20th October 1975 under the RRB Act 1976.
According to the Law of Diminishing Returns, the economically relevant zone is Zone-II.
In the case of fruits and vegetables, the marketed surplus is nearly 80%.