Deck 1 Flashcards
1
Q
Marginal Rate of Substitution
A
2
Q
Budget equation
A
Y= p1q1 + p2q2
3
Q
Price elasticity of demand
A
4
Q
Income elasticity of demand
A
Note the q and y denominators should be averages
5
Q
Cross elasticity of demand
A
6
Q
Total Costs TC
A
TFC + TVC
7
Q
Total Variable Costs TVC
A
w * l (wage x labor)
8
Q
Average Total Costs ATC
A
9
Q
Average Variable Costs
A
10
Q
Total Revenue
A
price x quantity
In case of perfect competition:
Average Revenue AR = p
Marginal Revenue MR= p
11
Q
Marginal Revenue
A
12
Q
Marginal Profits
A
MR-MC
13
Q
Elasticity of Supply
A
14
Q
Marginal Utility
A
The change in a consumer’s total utility when he consumes one additional unit is the marginal utility
15
Q
Leaks = Injections
A
Taxes + Savings + iMorts = Govt exp + eXports + Investments
16
Q
Multiplier
A
20
Q
Inflation rate
A
