Calculations

Question 1

Micro

PED

Answer 1

(%Q/%P) x 100

Question 2

Micro

YED

Answer 2

(%Q/%income) x 100

Question 3

Micro

XED

Answer 3

(% change in quantity demanded of good ‘X’/% change in price of good ‘Y’) x 100

Question 4

General knowledge

Percentage change

Answer 4

[(New value - Old value)/(Old value)] x 100

Question 5

Micro

Consumer surplus (HL)

Answer 5

1/2(quantity demanded x change in price)

Area=below demand curve and above price level

Question 6

Micro

Producer surplus (HL)

Answer 6

1/2(quantity demanded x change in price) or TR - TC

Area=above supply curve and below the price level

Question 7

Micro

AVC (HL)

Answer 7

TC/Q

Question 8

Micro

AFC (HL)

Answer 8

FC/Q

Question 9

Micro

ATC (HL)

Answer 9

TC/Q

Question 10

Micro

Profit maximizing level of output (HL)

Answer 10

MC=MR

Question 11

Micro

TC (HL)

Answer 11

Q x ATC or Q x MC

Question 12

Micro

TR (HL)

Answer 12

Q x P or Q x AR or Q x MR

Question 13

Macro

GDP or AD (HL)

Answer 13

C + I + G + (X - M)

Question 14

Macro

Nominal GDP (HL)

Answer 14

C +I + G + Xn or Real GDP - GDP deflator

Question 15

Macro

Real GDP (HL)

Answer 15

(Nominal GDP/GDP deflator) x 100

Question 16

Macro

GDP deflator (HL)

Answer 16

(Nominal GDP/Real GDP) x 100

Question 17

Macro

GDP per capita (HL)

Answer 17

(GDP/population or area) x 100

Question 18

Macro

Unemployment rate (HL)

Answer 18

(# of employed people/labor force) x 100

Question 19

Macro

Inflation rate (HL)

Answer 19

[(CPIcurrent - CPIprevious) / (CPIprevious)] x 100

Question 20

Macro

CPI (HL)

Answer 20

(Cost of Bastket current year/Cost of Basket base year) x 100

Question 21

Macro

Government spending multiplier (HL)

Answer 21

(1)/(1-MPC)

Question 22

Macro

MPC (HL)

Answer 22

Change in consumption/Change in income

Question 23

Macro

Tax multiplier (HL)

Answer 23

(MPC)/(1 - MPC)

Question 24

Macro

Tax revenue (HL)

Answer 24

Tax rate x Taxable income

Question 25

Macro

Disposable income (HL)

Answer 25

TI(Income) - TR

Question 26

Macro

Interest rate (HL)

Answer 26

Interest/money invested or borrowed

Question 27

Macro

Investment (HL)

Answer 27

Gross investment - decrease in value of assets over time

Question 28

Macro/Global

Opportunity cost (HL)

Answer 28

Cost of Y/cost of X

Question 29

Global

Current account balance (HL)

Answer 29

Exports and imports of goods and services + net income from abroad + net transfers

Question 30

Global

Trade balance (HL)

Answer 30

Exports - imports

Question 31

Macro

GNI

Answer 31

(GDP + factor income earned abroad) - factor income paid abroad

Question 32

Macro

Natural rate of unemployment

Answer 32

Structural + Frictional + Seasonal unemployment