Micro

Question 1

Price Elasticity of Demand (PED)

Answer 1

Percentage change in QTY / Percentage change in P

Question 2

Income elasticity of Demand (YED)

Answer 2

Percentage change in QTY / Percentage change in income

Question 3

Cross Elasticity of demand (XED)

Answer 3

Percentage change in QTY of Good A / Percentage change in QTY of good B

Question 4

Price Elasticity of Supply (PES)

Answer 4

Percentage change in QTY Supplied / Percentage change in price

Question 5

Social costs

Answer 5

Private costs + External costs

Question 6

Social Benefits

Answer 6

Private benefits + External Benefits

Question 7

Profit Maximisation

Answer 7

Marginal Cost (MC) = Marginal Revenue (MR)

Question 8

Sales Maximisation

Answer 8

Average cost (AC) = Average revenue (AR)

Question 9

Revenue Mazimisation

Answer 9

Marginal revenue (MR) = 0

Question 10

Total Revenue (TC)

Answer 10

Price (P) x Quantity (Q)

Question 11

Average revenue (AR)

Answer 11

Total Revenue (TR) / Quantity (Q)

Question 12

Marginal Revenue (MR)

Answer 12

Change in revenue / Change in QTY

Question 13

Total Costs (TC)

Answer 13

Fixed Costs (FC) + Variable Costs (VC)

Question 14

Total Variable Cost

Answer 14

Variable cost x Quantity

Question 15

Average Cost (AC)

Answer 15

Total cost (TC) / Quantity (Q)

Question 16

Marginal Cost (MC)

Answer 16

Change in cost / Change in Quantity

Question 17

Productive Efficiency

Answer 17

Lowest point on AC