Indian Economy Questions

Marginal propensity to consume (MPC) in economics is a metric that quantifies induced consumption, the concept that the increase in personal consumer spending (consumption) occurs with an increase in disposable income (income after taxes and transfers).

A business owned by one person and operates for their benefits is called as Sole Proprietorship or sole trader.

Bilater monopoly occurs in a market where a single seller i.e, a only one monopoly and a single buyer i.e, one monopsony exists.

Microeconomics is concerned with the study of individual firms, households, etc...

Any type of insurance, be it home, auto, life, health, etc. are based on a principle of division of risk.

Division of Risk :: This is based on how much risk the insurer estimates the insured's coverage to be. The riskier the opportunity (bad health, area the home is in) the higher the premium costs.