1. Themes 1 – 4 formula quiz

2. 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%

3. Topic 1.1.5 what is the formula for:
Productivity?

4. 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?

5. 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

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

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

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

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

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

11. Topic 3.4.1 what is x-inefficiency?

12. Topic 3.4.4 concentration ratios?
Three firm concentration ratio?

13. 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

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

15. 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

16. 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

17. 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

18. 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

19. 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%

20. Topic 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