Question 1

What does the abbreviation 'GDP' stand for in economic terms?

Accepted Answer

Gross Domestic Product. GDP stands for Gross Domestic Product which represents the total value of goods and services produced within a country. It is a primary indicator used to gauge the health of a country's economy. High GDP growth generally suggests a productive and expanding economy.

Question 2

In the context of Indian taxation, what does 'GST' stand for?

Accepted Answer

Goods and Services Tax. GST stands for Goods and Services Tax which is an indirect tax used in India on the supply of goods and services. It was implemented to replace multiple cascading taxes levied by the central and state governments. This comprehensive tax came into effect on July 1, 2017.

Question 3

What is the full form of 'FDI' regarding international investment?

Accepted Answer

Foreign Direct Investment. FDI stands for Foreign Direct Investment which occurs when an individual or business from one country invests in business interests in another country. It involves establishing business operations or acquiring business assets in the foreign nation. FDI is crucial for the economic development of developing nations.

Question 4

What does 'SEZ' stand for in the context of industrial policy?

Accepted Answer

Special Economic Zone. SEZ stands for Special Economic Zone which is an area in a country that is subject to different economic regulations than other regions within the same country. These zones are created to attract foreign investment and increase exports. Businesses operating in these zones often enjoy tax incentives and lower tariffs.

Question 5

In economics, what does the abbreviation 'FII' represent?

Accepted Answer

Foreign Institutional Investor. FII stands for Foreign Institutional Investor which refers to an investment fund or investor from a foreign country. These investors generally invest in the financial markets of a country other than where they are based. They play a significant role in the volatility and liquidity of the stock market.

Economy & Tax — Set 1