Indian Economy Questions

Assessing opportunity cost involves making choices and dealing with consequences.

Mixed economy is the most common economic system in the world.

Production costs to an economist reflect opportunity costs.

Although demand curves are typically downward sloping to reflect that consumers’ utility for a good diminishes with increased consumption, firm supply curves are generally upward sloping.The upward sloping character reflects that firms will be willing to increase production in response to a higher market price because the higher price may make additional production profitable.

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

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.

CST is not payable on outward freight (if charged separately) and outward insurance if property in goods passes to buyer at the time of despatch.

It means that Sale price does not include Freight charges will not attract CST when shown separately in they Invoice. But goods & freight show in one invoice CST will attractive.