Indian Economy Questions

Assessing opportunity cost involves making choices and dealing with consequences.

Income taxes are allocated to extraordinary items, discontinued operations and prior period adjustments.

Production costs to an economist reflect opportunity costs.

A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good is nothing but a production possibilities curve.

The India's commerce and industry ministry has started the exercise to revise base year to 2017-18 for computation of wholesale inflation with a view to present more realistic picture of the price situation

In May last year, the government revised the base year for WPI-based inflation to 2011-12 to give a better indication of changes in prices of commodities.

The new index, with 2017-18, is expected to have new items, which would provide a more realistic picture of price rise and its impact on people.

Most of the additions could be in the manufactured products category. Currently, the index has a total of 697 items, including primary articles, fuel and power and manufactured products.

GDP tends to overstate economic well-being because it takes into account social costs related to the consumption of products with adverse health effects