Podcast
Questions and Answers
Which market structure is characterized by a single seller and high barriers to entry?
Which market structure is characterized by a single seller and high barriers to entry?
- Perfect competition
- Oligopoly
- Monopoly (correct)
- Monopolistic competition
What is the main characteristic of Cobb-Douglas production function?
What is the main characteristic of Cobb-Douglas production function?
- Decreasing marginal returns
- Increasing returns to scale
- Constant elasticity of substitution (correct)
- Linear relationship between inputs and outputs
Which of the following factors does NOT typically contribute to market failure?
Which of the following factors does NOT typically contribute to market failure?
- Externalities
- Public goods
- Asymmetric information
- Perfect competition (correct)
What phenomenon describes a situation where increased savings leads to decreased aggregate demand?
What phenomenon describes a situation where increased savings leads to decreased aggregate demand?
In game theory, what does Nash equilibrium signify?
In game theory, what does Nash equilibrium signify?
Which of the following is an example of a Veblen good?
Which of the following is an example of a Veblen good?
Which measure is used to indicate the average price change over time for a basket of consumer goods and services?
Which measure is used to indicate the average price change over time for a basket of consumer goods and services?
What primarily drives the concept of monopolistic competition?
What primarily drives the concept of monopolistic competition?
What role does elasticity of demand play in understanding consumer behavior?
What role does elasticity of demand play in understanding consumer behavior?
How do fixed and variable costs impact a firm's pricing strategy?
How do fixed and variable costs impact a firm's pricing strategy?
What is the significance of the Nash equilibrium in oligopoly market structures?
What is the significance of the Nash equilibrium in oligopoly market structures?
Explain the concept of opportunity cost in economic decision-making.
Explain the concept of opportunity cost in economic decision-making.
How does the theory of cost influence a firm’s production decisions?
How does the theory of cost influence a firm’s production decisions?
What are the potential effects of inflation on the economy, particularly regarding purchasing power?
What are the potential effects of inflation on the economy, particularly regarding purchasing power?
How do public goods differ from private goods in terms of market economics?
How do public goods differ from private goods in terms of market economics?
What is the paradox of thrift, and how does it relate to macroeconomic stability?
What is the paradox of thrift, and how does it relate to macroeconomic stability?
Flashcards
Market Equilibrium
Market Equilibrium
The point where supply and demand for a product are equal.
Elasticity of Demand
Elasticity of Demand
How responsive quantity demanded is to a change in price.
GDP (Gross Domestic Product)
GDP (Gross Domestic Product)
The total market value of all final goods and services produced within a country in a given period.
Monopoly
Monopoly
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Phillips Curve
Phillips Curve
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Opportunity Cost
Opportunity Cost
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Production Function (Cobb-Douglas)
Production Function (Cobb-Douglas)
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Market Failure
Market Failure
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Supply and Demand
Supply and Demand
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Equilibrium Price
Equilibrium Price
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Profit Maximization
Profit Maximization
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Inflation
Inflation
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Unemployment
Unemployment
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Study Notes
Module 1 - Micro Economics
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Consumers, Producers, and Market Structures: Economic way of thinking, ten principles of economics, laws of supply and demand, market equilibrium, income and price elasticity, elasticity of demand, indifference curves, substitutes and complements.
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Production and Cost: Firm as a producer, production function (Cobb-Douglas), returns to scale, theory of cost, fixed and variable costs, opportunity cost, profit maximization, cost minimization, market structures (perfect competition, oligopoly, monopoly, monopolistic competition).
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Theory of Price: Price and output decisions in different market structures (monopoly, monopolistic competition, oligopoly, cartel, price leadership), market failure, game theory, asymmetric information, NASH equilibrium, bargaining, auctions, Veblen goods, emergence of the leisure class, conspicuous consumption.
Module 2 - Macroeconomics and Public Policy
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National Income Accounting: Methods of measuring GDP/GNP, growth theory, endogenous growth, growth traps, theory of income determination, concepts of a multiplier, aggregating supply and demand, public policy, paradox of thrift, crowding out effect.
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Macroeconomic Policies: Savings and investments, inflation, unemployment, measures of inflation (WPI and CPI), Phillips Curve, fiscal and monetary policy, externalities, public goods, introduction to the money market, foreign trade, balance of payments, tariff and non-tariff barriers.
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Indian Economy: From 1947 to 1991, charting the path from a developing economy to a developed economy, role of natural resources, infrastructure, population growth in economic development, trends in national income growth, per capita income, services-led growth, poverty, calculation, Indian agriculture, NITI Aayog, banking and capital market structures, role of public sector, India's foreign trade, current and capital account convertibility.
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