TN State Board 12th Economics Question Paper 2023

The Finance Commission is a constitutional body under Article 280, primarily tasked with defining the financial relations between the Central Government and the State Governments, specifically regarding the distribution of tax revenues (resource transfer).

NITI Aayog stands for National Institution for Transforming India. It was formed on January 1, 2015, replacing the Planning Commission to provide strategic and technical advice to the government.

According to Classical economists, the rate of interest is the reward for 'waiting' or 'abstinence' from consumption, which is equivalent to saving. It is the price that equilibrates the supply of savings and the demand for investment.

Foreign Direct Investment (FDI) involves a lasting interest and significant control in an enterprise. Purchasing bonds or stocks (portfolio investment) is not considered FDI because it does not involve management control or a lasting interest in the foreign entity.

PQLI (Physical Quality of Life Index) measures the quality of life and well-being of a population, which is a core component of economic development, distinguishing it from purely numerical economic growth.