Economy Concepts


What is the meaning of Claim Amount?

Claim amount is the amount of money which is to be paid at the maturity of an insurance policy or in event of the death of the insured person. In latter case, the claim amount is given to the beneficiary or the nominee or even the legal heir of the insured person. The policyholder or

What is the meaning of Ceteris Paribus?

Ceteris Paribus is a commonly used phrase in economics which is used to completely ignore the effects of other factors apart from the one which is being under consideration which signifies the special causal relation between two variables. The phrase theoretically means ‘all other things being unchanged or constant’. It is basically a Latin phrase

What is Baltic Freight Index?

Baltic Freight Index stands for shipping and trade index which has been created by the Baltic Exchange based in London. It is a measure of the cost of transporting various raw materials. The Baltic Exchange contacts the shipping brokers directly for assessing price levels for a specific route, product, time and speed. The Baltic Freight

Economically Backward Class (EBC)

The term Economically Backward Class was coined for the first time in 2014-15 and was first adopted in Dr Ambedkar Post-matric Scholarship for EBC students. Indian citizens belonging to the General category with an income equal to or less than Rs. 1 lakh per annum are classified as Economically Backwards(EBC). Commission for EBCs There is a Commission for

Green GDP

Green Gross Domestic Product is the index of the Economic growth of a particular country which enshrines the environmental consequences of the economic growth. Simply put, Green GDP is conventional gross domestic product figures adjusted for the environmental costs of economic activities. It’s a measure of how a country is prepared for sustainable economic development.

Finance Commission

The Finance Commission is a constitutional body created by the President of India under Article 280 of the Constitution of India, 1950. Its main purpose is to keep a check on the vertical and horizontal imbalances of the federal finance of India. While vertical imbalances refer to the imbalance between the revenue generated by the Centre


Dumping is a kind of predatory pricing in the context of international trade, whereby a country exports its goods/products at a price less than the price at which it is sold in the home market of the importing country. Dumping usually takes place in huge quantities to increase market share in a foreign market or to drive

Drug Price Control Orders (DPCO)

Under the Essential Commodities Act, a Drug Price Control is issued to ensure that the cost of essential medicines which are required in bulk amounts are fixed in such a way that they are affordable for everyone. The order has its roots in 1970 when the government realised the ill effects of the high profitability

Drought Year

Drought is a deficiency in rainfall/precipitation over an extended period of time, usually a season or more. As per the India Metrological Department (IMD), a drought year is a year when overall rainfall deficiency is greater than 10% of Long average Value (LPA) and more than 20% area affected by the drought like conditions, either moderate or severe

What are different types and effects of drought?

Drought is a deficiency in rainfall/precipitation over an extended period of time, usually a season or more. Drought is a caused at times due to direct or indirect human involvement. Basically, it is the shortage of water availability due to insufficient precipitation, over-usage of water from the sources, high rate of evaporation etc.Drought differs from other