Calculations Flashcards
What is the Formula for PED?
% Change in Quantity Demanded / % Change in Price
What is the Formula for Total Revenue?
Price x Quantity
What is the Formula for YED?
% Change in Income / % Change in Price
What is the Formula for PES?
% Change in Quantity Supplied / % Change in Price
What is the Formula for Nominal GDP?
C + I + G + (X - M)
What is the Formula for Nominal GNI?
GDP + Net Income from Abroad
What is the Formula for Real GDP?
(Nominal GDP / Price Deflator) x 100
What is the Formula for Price Deflator?
(Nominal GDP / Real GDP) x 100
What is the Formula for Real GDP per Capita?
Real GDP / Population
What is the Formula for Unemployment Rate?
(Number of unemployed / Labor force) x 100
What is the Formula for CPI?
(Basket specific year / Basket base year) x 100
What is the Formula for Rate of Economic Growth?
Percentage change of real GDP
What is the Formula for Real Interest Rates?
Nominal interest rate - Rate of inflation
What is the Formula for the Price of a Good in a Different Currency?
If $1.5 = €1 then
$1 = 1 / 1.5 = €0.67
What is the Formula for the Changes in Value of a Currency?
Percentage change of currency through time.
What is the Formula for Consumer and Producer Surplus?
Usually triangle formula (b x h x 1/2) or trapezium ((a + b) x h x 1/2).
What is the Formula for Profit?
TR - TC
What is the Formula for Marginal Cost?
Change in Total Cost / Change in Quantity
What is the Formula for Marginal Revenue?
Change in Total Revenue / Change in Quantity
What is the Formula for Average Cost?
Total Cost / Quantity
What is the Formula for Average Revenue?
Total Revenue / Quantity
What is the Formula for a Weighted Price Index?
(Basket specific year / Basket base year) x 100
Same as CPI
What is the Formula for Lorenz Curve Data?
Addition of cumulative data: start from bottom 20%, add to 40%, etc.
What is the Formula for the Gini Coefficient?
Area between Diagonal and Lorenz Curve / Entire area under diagonal
What is the Formula for Average Tax Rate?
(Tax paid / Gross Income) x 100
What is the Formula for Value of Indirect Tax?
Use Nsolve to solve:
a + ((percentage of tax) x a) = disposable income
What is the Formula for the Keynesian Multiplier?
Change in Real GDP / Initial change in expenditure
What is the Formula for Change in Real GDP using the Keynesian Multiplier?
Initial change in exp. x Keynesian multiplier
What is the Formula for the Keynesian Multiplier using MPC?
1 / 1 - MPC or 1 / MPW
What is the Formula for Export Revenue for an Exporting Country?
Quantity of exports x World price
What is the Formula for Import Expenditure for an Importing Country?
Quantity of imports x World price
What is the Formula for Opportunity Cost to Identify Comparative Advantage?
Sacrifice of one good / gain of other good
