Gross Domestic Product:
Meaning and Calculation The gross domestic product or GDP of any country is a yardstick to measure the size of its economy. It is defined as the total market value of all final goods and services of a country in a given period of time (normally a year). It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.
GDP = consumption + gross investment + government spending + (exports - imports),
or,
GDP = C + I + G + (X-M)
Indirect tax
Charge levied by the State on consumption, expenditure, privilege, or right but not on income or property. Customs duties levied on imports, excise duties on production, sales tax or value added tax (VAT) at some stage in production-distribution process, are examples of indirect taxes because they are not levied directly on the income of the consumer or earner. Since they are less obvious than income tax (because they don't show up on the wage slip) politicians are tempted to increase them to generate more state revenue. Also called consumption taxes, they are regressive measures because they are not based on the ability to pay principle.
Inflation
The inflation rate is the increase in prices for a basket of goods and services expressed on a yearly basis. Inflation is a rise in the general level of prices of goods and services in an economy over a period of time
Insurance
A promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance.
National Income
According to the famous economist J.M. Keynes national income is the money value of all the goods and services produced in a country during a year. The National income of any country shows the economic position of the country. It is the national income which helps to compare the progress of the country over a period of time.
Service Sector
Service Sector is the part of industry or business which deals with the marketing and selling of intangible products rather than physical goods.
Tourism
Tourism is the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited.
