Microeconomics In Everyday Life
A smartphone company lowers prices for older
models. What happens to demand?
Demand increases
The total value of final goods and services produced in a year is?
GDP
Buying from and selling to other countries is called what?
Import: buy from abroad; Export: sell abroad / International Trade
A bakery owned by a single person. Business type?
Sole proprietorship
Business actions that do not harm nature show?
Sustainability
Coffee shops notice satisfaction decreases with
each additional cup. Name this
Diminishing marginal utility
An increase in general prices across the economy is called?
Inflation
Bangladesh specializes in garment production.
What economic concept is this?
Comparative Advantage
Apple issues bonds to fund new iPhones, This is a method of what?
Method of external finance
Airlines charge differently for same flight.
Strategy?
Price Discrimination
Tesla increases electric car prices. If buyers still
purchase similar amounts, demand is?
Governments spent more and central banks cut
rates during COVID-19. This is an example of?
Monetary and Fiscal Policy
US imposes tariffs on Chinese goods. Effect on consumers?
Higher Prices
Amazon opens new warehouses instead of buying
competitors. Growth type?
Internal Growth
Few airlines dominate the market. Structure?
Oligopoly
A new tax on soft drinks raises prices. What type of tax is this?
Indirect Tax
RBI raises interest rates. This will likely cause what?
Reduce consumer spending & aggregate
demand
The body that promotes free trade globally is the?
WTO
What is it called when lower prices are used to eliminate competitors
True or False: A company can claim to fully practice CSR even if it occasionally prioritises profit over social or environmental concerns
False
I’m set by law to help the producer,
but I can create unwanted surplus too
Price Floors
I connect nations through exchange,
but tariffs and quotas try to cage me.
I’m essential for comparative advantage to work.
Free Trade
If the rupee appreciates, what happens to Indian exports?
Decrease
Expanding overseas to reduce dependency on one market is called?
Diversification
I reward risk but punish uncertainty. I exist in every market, yet vanish in perfect competition. What am I?
Profit