TERMS AND TERMINOLOGY - Part 2

Jagranjosh.com presents the terms and terminology of various terms that hold special significance in the field of Economics. Let us have a look at some important terms mostly used in the feild of Economics.

Life Expectancy at Birth: Life Expectancy at Birth can be defined as the number of years a new born infant would survive if prevailing patterns of age - specific mortality rates at birth time were to stay the same all through the life of the child.

Maternal Mortality Rate: Maternal Mortality Rate is the connection between the number of maternal deaths due to the bearing of child by the sum of live births & foetal deaths in a given year or by the number of live births.

Mortality Rate: Mortality rate is the annual number of deaths per  1,000 people. Mortality rate is different from morbidity rate. Morbidity Rate refers to the number of people who have a disease in contrast to the total number of people in population.

Multilateral Trade Agreements: Multilateral Trade Agreements are the agreements made by a nation with more than 2 nations to trade goods & services.

National Product or National Income: National Product or National Income can be calculated by Total value of goods & services produced in a nation plus income from abroad.

Opportunity Cost: Opportunity cost can be defined regarding a particular action or value & is equivalent to the worth of the inevitable alternative action or choice.

Poverty Line: The per capita expenditure on some minimum requirements of a person including intake of food of daily average of 2,100 calories in urban areas and 2,400 calories in rural areas.

Provident Fund: Provident fund is a savings fund in which both employee and employer contribute frequently in the interest of employee. It is kept up by the government & given to the employee when he/ she retires or resigns from work.

SAARC: SAARC stands for South Asian Association for Regional Cooperation. It is an involvement of 8 countries of South Asia —Bhutan, Bangladesh, India, Nepal, Maldives, Pakistan, Afghanistan and Sri Lanka. It provides a podium for the people of South Asia to work mutually in a spirit of comradeship, confidence & understanding. It aims to speed up the course of economic & social development in member countries.

SEZ: SEZ stands for Special Economic Zone. It is a geographical region that has economic laws dissimilar from a country’s distinctive economic laws. The goal of SEZ is to augment foreign investment.

SLR: SLR refers to Statutory Liquidity Ratio. It is a minimum percentage of the total deposits & reserves to be sustained by the banks in liquid form as stated by the regulations of RBI.