Explanation

• GDP (Gross Domestic Product) measures the total value of all goods and services produced within a country in a year.
• Does not include income from abroad.
• Used to assess economic performance and growth.
• Expressed in monetary terms (currency).
• Helps in policy-making and comparing economies.

Last verified on 12-02-2026

Explanation

• A market glut occurs when there is excess supply compared to demand.
• Sellers lower prices to clear stock, causing a price drop.

Additional information:

• Shortage → excess demand, price rises
• Equilibrium → supply = demand
• Surplus stock → unsold inventory increases
• Dumping → selling excess goods at very low prices

Last verified on 11-02-2026

Explanation

• GDP (Gross Domestic Product) measures the total monetary value of all goods and services produced within a country in a specific time period, usually one year.

Additional information:

Components of GDP:

• Consumption (household spending)
• Investment (business spending)
• Government spending
• Net exports (exports − imports)

Last verified on 09-02-2026

Explanation

• Economic theories and principles are statements that explain economic behavior or the functioning of an economy.
• They help in predicting outcomes and guiding decisions.
• Theories are general explanations, while principles are fundamental truths.
• Used by economists, policymakers, and businesses.
• Aid in understanding markets, production, and consumption.

Last verified on 06-02-2026

Explanation

• Devaluation means a deliberate decrease in the official value of a country’s currency.
• Usually done by the government or central bank.
• Helps boost exports by making them cheaper internationally.
• Can increase import costs.
• Common in countries facing trade deficits.

Last verified on 06-02-2026