Economics:

1. GDP(Gross domestic production) = C+I+G

Money value of all the final goods and services produced by a nation in one financial year within
the boundaries of the country.
2. GNP(Gorss National Production) = GDP + Net factor income from abroad
3. National income is the total income earned by all the residents of an economy.
4. GST is charged on retail prices.
5. Indirect taxes are also called taxes on expenditure. Whereas direct taxes are called personal
taxes.
6. NNP(Net national product) or N.I at market price = GNP – capital consumption
7. N.I (National Income) = NNP – indirect taxes + subsidies
8. P.I (Personal Income) = N.I – retained earnings + transfer payments
Total income received by all the legal residents of an economy in one financial year.
9. D.I (Disposable income) = P.I – direct taxes (Personal taxes)
10. Types of inflation
a) Demand pull inflation
b) Cost Push inflation
c) Import Cost push inflation
11. Economic agents: 1. Househod 2. Firms. 3. State and 4. Foreign trade
12. Opportunity Cost is the next best alternative forgone
13. Factors of production: 1. Land 2. Labour 3. Capital 4. Enterprise
14. Elasticity of demand: refers to the rate at which the quantity demand of commodity varies (rise
or falls) in response to a given variation(fall or rise) in its price.
a) Price Elasticity of demand: due to change in price
b) Income elasticity of demand: due to the change in income
c) Cross elasticity of demand: due to the change in the price of related goods