Economics concepts

• The cost of the next best alternative you give up when you make a choice. If you spend $10 on a movie, the opportunity cost might be not buying a book with that money.

• Total value of all final goods and services produced within a country's borders in a specific time period. It's a broad measure of a nation's overall economic activity.

• The rate at which the general level of prices for goods and services is rising, eroding purchasing power. Imagine if a candy bar cost $1 last year but now it's $1.05; that's inflation.

• The percentage of the labor force that is jobless. High unemployment means more people are looking for work than there are jobs available.

• Government decisions on spending and taxes to influence economic conditions. If the economy is slow, the government might spend more or cut taxes to stimulate it

Managed by a country's central bank (like the Reserve Bank of India in your case), it involves controlling the money supply and interest rates to manage inflation and stabilize the economy

• Perfect Competition: Many small sellers, similar products, no control over price.
• Monopoly: One seller, high control over price.
• Oligopoly: Few sellers, products might be similar or differentiated, some price control.
• Monopolistic Competition: Many sellers, products are differentiated, some control over price.

• Measures how much the quantity demanded or supplied of a good responds to a change in price. If a small price increase causes a big drop in demand, that product has high demand elasticity.

• Planning how to spend your money, ensuring your expenses don't exceed your income.

• Savings: Money set aside for future use, often in a bank account.
• Investment: Putting money into assets like stocks, bonds, or real estate with the expectation of generating an income or profit.

• Borrowed money that needs to be paid back with interest. Managing debt wisely is crucial; good debt (like a mortgage) can build assets, while bad debt (like high-interest credit card debt) can drain finances

Spreading investments across various assets to reduce risk. Don't put all your eggs in one basket!

Shares in a company. Owning stock means you own a piece of that company.

Loans you give to entities (government or corporations) where they promise to pay you back with interest.

The cost of borrowing money or the reward for saving. When banks charge you interest on a loan, that's the interest rate

The value of one currency for the purpose of conversion to another. If INR to USD rate is 80, it means 1 USD equals 80 INR

Buying and selling goods and services across international borders. Countries with trade surpluses export more than they import, while those with deficits import more than they export

macroeconomics

microeconomics

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