Calculations

Question 1

What is the Formula for PED?

Answer 1

% Change in Quantity Demanded / % Change in Price

Question 2

What is the Formula for Total Revenue?

Answer 2

Price x Quantity

Question 3

What is the Formula for YED?

Answer 3

% Change in Income / % Change in Price

Question 4

What is the Formula for PES?

Answer 4

% Change in Quantity Supplied / % Change in Price

Question 5

What is the Formula for Nominal GDP?

Answer 5

C + I + G + (X - M)

Question 6

What is the Formula for Nominal GNI?

Answer 6

GDP + Net Income from Abroad

Question 7

What is the Formula for Real GDP?

Answer 7

(Nominal GDP / Price Deflator) x 100

Question 8

What is the Formula for Price Deflator?

Answer 8

(Nominal GDP / Real GDP) x 100

Question 9

What is the Formula for Real GDP per Capita?

Answer 9

Real GDP / Population

Question 10

What is the Formula for Unemployment Rate?

Answer 10

(Number of unemployed / Labor force) x 100

Question 11

What is the Formula for CPI?

Answer 11

(Basket specific year / Basket base year) x 100

Question 12

What is the Formula for Rate of Economic Growth?

Answer 12

Percentage change of real GDP

Question 13

What is the Formula for Real Interest Rates?

Answer 13

Nominal interest rate - Rate of inflation

Question 14

What is the Formula for the Price of a Good in a Different Currency?

Answer 14

If $1.5 = €1 then

$1 = 1 / 1.5 = €0.67

Question 15

What is the Formula for the Changes in Value of a Currency?

Answer 15

Percentage change of currency through time.

Question 16

What is the Formula for Consumer and Producer Surplus?

Answer 16

Usually triangle formula (b x h x 1/2) or trapezium ((a + b) x h x 1/2).

Question 17

What is the Formula for Profit?

Answer 17

TR - TC

Question 18

What is the Formula for Marginal Cost?

Answer 18

Change in Total Cost / Change in Quantity

Question 19

What is the Formula for Marginal Revenue?

Answer 19

Change in Total Revenue / Change in Quantity

Question 20

What is the Formula for Average Cost?

Answer 20

Total Cost / Quantity

Question 21

What is the Formula for Average Revenue?

Answer 21

Total Revenue / Quantity

Question 22

What is the Formula for a Weighted Price Index?

Answer 22

(Basket specific year / Basket base year) x 100

Same as CPI

Question 23

What is the Formula for Lorenz Curve Data?

Answer 23

Addition of cumulative data: start from bottom 20%, add to 40%, etc.

Question 24

What is the Formula for the Gini Coefficient?

Answer 24

Area between Diagonal and Lorenz Curve / Entire area under diagonal

Question 25

What is the Formula for Average Tax Rate?

Answer 25

(Tax paid / Gross Income) x 100

Question 26

What is the Formula for Value of Indirect Tax?

Answer 26

Use Nsolve to solve:

a + ((percentage of tax) x a) = disposable income

Question 27

What is the Formula for the Keynesian Multiplier?

Answer 27

Change in Real GDP / Initial change in expenditure

Question 28

What is the Formula for Change in Real GDP using the Keynesian Multiplier?

Answer 28

Initial change in exp. x Keynesian multiplier

Question 29

What is the Formula for the Keynesian Multiplier using MPC?

Answer 29

1 / 1 - MPC or 1 / MPW

Question 30

What is the Formula for Export Revenue for an Exporting Country?

Answer 30

Quantity of exports x World price

Question 31

What is the Formula for Import Expenditure for an Importing Country?

Answer 31

Quantity of imports x World price

Question 32

What is the Formula for Opportunity Cost to Identify Comparative Advantage?

Answer 32

Sacrifice of one good / gain of other good