Formulas and Classifications

Question 1

What is the formula for calculating the labour force?

Answer 1

Employed + Unemployed

Question 2

What is the formula for calculating the unemployment rate?

Answer 2

Unemployed / Labour force × 100

Question 3

What is the formula for calculating the participation rate (labour force)?

Answer 3

Labour force / Working age population × 100

Question 4

Who is part of the working age population?

Answer 4

People aged 15 years and over.

Question 5

What requirements are needed to be classified as being employed?

Answer 5

You need to have 1 paid working hour per week to be classified as ‘employed’.

Question 6

What does AD consist of?

Answer 6

AD = C + I + G + (X-M)

Question 7

What results in a balanced circular flow of income?

Answer 7

When S + T + M = I + G + X

Question 8

How do you calculate APC?

Answer 8

Consumption/Income

C/Y

Question 9

How do you calculate APS?

Answer 9

Savings/Income

S/Y

Question 10

How do you calculate MPS?

Answer 10

Change in savings/Rise in income

Question 11

How do you calculate MPC?

Answer 11

Change in consumption/Rise in income

Question 12

What is MPC + MPS = to?

Answer 12

1 (one)

Question 13

What is APC + APS = to?

Answer 13

1 (one)

Question 14

How do you calculate the consumption function?

Answer 14

C = Co+(MPC×Y)
Co = autonomous consumption

Question 15

How is productivity measured?

Answer 15

Output/Input

Question 16

Difference between production and productivity

Answer 16

Production: total amount of goods and services produced by and economy
Productivity: amount of output over a certain input

Question 17

Average rate of tax

Answer 17

Total tax paid/Total income