Indian Economy Questions

Another name for false productivity is Spinning your wheels. They use the term for false productivity because your wheels are spinning as you're doing work but you're not going anywhere i.e, making any progress.

Economics is the study of how society manages its scarce resources i.e, Limited wants & unlimited resources.

The law of demand implies that "The higher the price of a good, the lesser the quantity demanded".

For example:

If the rate of a mobile phone increased, the quantity demanded by the customers is decreased.

A perfectly inelastic demand curve is perfectly vertical either up or down in any way.

Value added is determined by the difference between the price of product or service and the cost of producing it.

Added Value = Price that the product or service is sold at - cost of producing the product.