Indian Economy Questions

Microeconomics is the branch or subset of economics that deals with the study of Decisions of individual firms, households and consumers.

Administered prices are prices set by government or firms which are not determined by regular market forces. They do not vary in response to short-run fluctuations in demand and supply conditions.

Examples include price controls and rent controls.

Tennis rackets and ballpoint pens are two independent goods. Since, one doesn't depend on the other.

Money spent by the government on government programs such as road work, electricity work, manhole, etc... that are aiming to contribute to the nation's social welfare in long and short term are referred to as Goverment Expenditures.

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

The most important determinant of consumer spending is the level of income.