Microeconomics
The study of economics at the smaller, firm and individual level — what people buy at prevailing prices, and how firms decide on inputs, outputs, prices, production, profits and losses.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
- Demand-pull inflationInflation caused by demand running ahead of the supply available to meet it — too much money chasing too few goods.
- Gross Domestic ProductThe market value of all final goods and services produced inside a country's borders in a period, whoever owns the producer — the standard measure of the size and growth of an economy.
- Gross National ProductThe market value of goods and services produced by a country's residents wherever in the world they are — GDP measured by nationality rather than by geography.
- InflationA sustained general rise in the price level, which erodes what a rupee buys — and the reason a nominal return has to be deflated before it means anything.
- Monetary policyThe central bank's management of money supply and interest rates to promote growth and hold prices stable — expansionary when it wants to push the economy up, contractionary when it wants to cool it.
- Net Factor Income from AbroadFactor income earned by a country's residents abroad minus factor income earned inside the country by non-residents — the single adjustment that converts GDP into GNP.
Where this is taught
Free preparation for NISM Series XV← All terms