Themes 1 – 4 formula quiz.

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Presentation transcript:

Themes 1 – 4 formula quiz

Percentage change versus percentage point change? What is the formula for percentage change? Percentage point change? Percentage change = Percentage point change = E.g. work out the percentage point change and the percentage change from 3% to 5%

Topic 1.1.5 what is the formula for: Productivity?

Topic 1.2.3 and 1.2.5 what is the formula for: Price elasticity of demand? Income elasticity of demand? Cross elasticity of demand? Price elasticity of supply?

Topic 2.4.4 what is the formula for: The multiplier? Multiplier = where MPC = OR Multiplier = where MPW = MPS = MPT is tax and MPM is import NOTE: MPC also stands for Monetary policy committee or marginal private cost

Topic 3.2.1 at what point do firms: Profit maximise? Sales maximise? Revenue maximise?

Topic 3.3.1 what is the formula for: TR, AR and MR?

Topic 3.3.2 what is the formula for: TC (using TFC and TVC); ATC; AFC; AVC and MC?

Topic 3.3.4 what is the shut down point for a firm?

Topic 3.4.1 What is the condition for: Allocative efficiency? Productive efficiency?

Topic 3.4.1 what is x-inefficiency?

Topic 3.4.4 concentration ratios? Three firm concentration ratio?

Topic 3.4.4 Game theory matrix Draw a game theory matrix showing the profits if firms charge high or low prices Profit Firm B high price Firm B low price Firm A high price Firm A low price

Topic 4.1.2 absolute and comparative advantage Absolute advantage definition? Comparative advantage definition?

Topic 4.1.2 absolute and comparative example Group A Work out the opportunity costs Andy can take 60 mins to vacuum or 45 mins to wash His opportunity cost is Bella’s opportunity cost is Andy Bella Vacuum room 60 mins 30 mins Wash dishes 45 mins

Topic 4.1.2 absolute and comparative example Who has the absolute and comparative advantage? Andy Bella Vacuum room 60 mins 30 mins Wash dishes 45 mins

Topic 4.1.2 absolute and comparative example Work out the opportunity costs US makes 12 cars or 4 laptops Japan makes 10 cars or 6 laptops US opportunity cost is Japan opportunity cost is No. produced per hour US Japan Cars 12 10 Laptops 4 6

Topic 4.1.2 absolute and comparative example Who has the absolute and comparative advantage? No. produced per hour US Japan Cars 12 10 Laptops 4 6

Topic 4.1.4 terms of trade? Terms of trade? NOTE: you must use index numbers not % change in your calculations Calculate the index if, over a given period, the index of export prices rises by 10% and the index of import prices rises by 5%

Topic 4.1.8 exchange rates The J curve shows the impact of a fall in currency on the trade balance. Draw this and state the Marshall-Lerner condition