A half-done reform: On LPG subsidy
Takeouts from the Editorials: The government has informed Parliament about its decision to completely do away with the subsidy offered to cooking gas used for household purposes The fall in…
2nd round of the Regional Connectivity Scheme – UDAN
The Minister of Civil Aviation has announced that the process for bidding for the second round of the Regional Connectivity Scheme – UDAN. The thrust in the second round will…
Centre to set up Alternative Mechanism for bank mergers
To expedite public sector bank merger, the Union Cabinet approved a framework for consolidation among PSBs, including a proposal to set up an Alternative Mechanism (AM) to create strong banks. …
What is payout ratio in finance?
Payout ratio is a financial metric used to express the proportion of earnings that a company pays out to its shareholders in the form of cash dividends. It is calculated…
What is loss aversion in Psychology?
A phenomenon that causes people to avoid taking risk, even though it could lead to gains that are disproportionately higher than losses. Loss aversion is explained by the fact that…
What is Big Mac index in Economics?
This is an index used to compare the price of a good across countries. The law of one price states that the price of a good sold internationally should converge…
What is ‘capital adequacy ratio’ in finance?
A financial metric used to gauge the ability of a bank to withstand losses without affecting its lenders and depositors. While there is a variety of capital adequacy ratios, it…
What is ‘Pork barrel’ in Economics?
Pork barrel is government spending that is targeted to benefit the residents of a certain constituency in return for their political support. The term is often used in a derogatory…
What is ‘bounded rationality’ in economics?
This is a theory of economic behaviour which states that human beings make decisions on the basis of limited information and constrained cognitive ability. This is in contrast to the…
Push for law to ensure transparency rules
The Economic Survey has stressed that the ‘opaque mesh’ of regulations prevalent in India not only make life difficult for citizens who cannot feign ignorance of the rules as a…
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