A reduction in production costs typically leads to an increase in supply, as producers can produce more at lower costs.

If the price of a substitute good increases, consumers will likely buy more of the original good, increasing its demand.

If supply decreases while demand remains constant, there will be a shortage, leading to an increase in the equilibrium price.

In the case of a surplus, suppliers will lower the price to encourage more sales, leading to a decrease in price.

When demand increases in a competitive market, the price of the good typically increases due to higher competition for the limited supply.

Net National Income (NNI) is calculated by subtracting depreciation from Gross National Income (GNI), reflecting the income available for consumption and investment.

A rightward shift in the demand curve indicates an increase in demand at all price levels.

A balanced budget occurs when a government's revenues are equal to its expenses, meaning there is neither a deficit nor a surplus.

Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price.

Nominal GDP refers to GDP measured at current prices, without adjusting for inflation.

Per capita income is calculated by dividing the total national income by the population, providing an average income per person.

'Per capita' means income per person, providing a measure of average economic output or income.

An increase in consumer preferences for a product typically leads to an increase in demand for that product.

When production costs increase, the supply of goods typically decreases because it becomes more expensive to produce them.

When the price of a product decreases, consumers are generally more willing to buy more of it, leading to an increase in demand.

A monopoly is characterized by having one seller that controls the entire market for a good or service.

High inflation erodes the purchasing power of money, leading to a decrease in the value of savings.

The Consumer Price Index (CPI) is a key indicator used to measure inflation by tracking changes in the price level of a basket of consumer goods and services.

Market equilibrium occurs when the quantity supplied equals the quantity demanded at a certain price.

Gross Domestic Product (GDP) measures the total value of all final goods and services produced within a country's borders in a specific time period.

National income refers to the total income earned by a country's residents, including wages, profits, rents, and taxes, minus subsidies.

Real GDP is adjusted for inflation, while nominal GDP is measured at current prices without such adjustments.

A price ceiling, which is a maximum price set by the government, can lead to a shortage as demand exceeds supply at that price.

A price ceiling is a maximum price set below equilibrium, leading to a shortage of the good.

The expenditure approach to calculating GDP is represented by the formula: GDP = C + I + G + (X - M), where C is consumption, I is investment, G is government spending, X is exports, and M is imports.

The law of demand states that, all else being equal, as the price of a good increases, the quantity demanded decreases.

The law of supply states that there is a direct relationship between price and quantity supplied; as price increases, quantity supplied also increases.

Microeconomics primarily focuses on individual markets and the behavior of consumers and firms within those markets.

Money serves multiple functions including being a medium of exchange, a store of value, and a unit of account.

The primary purpose of a budget is to track income and expenses to ensure financial stability.