Price Rise and Consumer Awareness — Flashcards

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Price rise is the continuous and constant increase in prices in different fields of economy. It is beneficial when it occurs with stability because: 1) It increases profit for producers and organizers…

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An inflationary situation occurs when there is a noticeable increase in price levels of commodities or services continuously at high rates, while production of goods and services does not increase pro…

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Monetary supply increases through: 1) Deficit financing - generating new money to fill budget deficits, 2) Increase in circulation of money - more transactions in the market, 3) Decrease in interest r…

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India's population grows at 1.9% annually (121 crores in 2011). This rapid population growth creates an imbalanced condition between demand and supply. As more people demand goods and services but pro…

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Black money is unregistered income on which tax is not paid, often hidden from accounting books to evade taxes. It contributes to price rise because people with black money try to spend it quickly to …

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Smuggling: Illegally importing goods without paying taxes to evade duties. Hoarding: Storing goods expecting future price rise, creating artificial scarcity. Black marketing: Taking undue advantage by…

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Price rise control is necessary because: 1) It creates a vicious cycle making life miserable for poor and middle class, 2) Reduces savings and capital formation, 3) Decreases foreign investment, 4) Cr…

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RBI uses: 1) Reducing money circulation to control spending, 2) Increasing interest rates making loans expensive, 3) Increasing bank rates forcing commercial banks to raise lending rates, 4) Increasin…