Equations

Question 1

Formula for Opportunity Cost

Answer 1

Loss in OPTION 1 / Gains in OPTION 2

Question 2

Formula for Equilibrium

Answer 2

Injections = Leakages

Question 3

Formula for Disposable income

Answer 3

Y = C + S

When:
y = disposable income (after tax)
c = consumption / spending
s = savings

Question 4

Formula for MPC

Answer 4

Change in Consumption / Change in Income

Question 5

Formula for MPS

Answer 5

Change in savings / changing in income

Question 6

Formula for APC

Answer 6

Consumption / Disposable Income

Question 7

Formula for APS

Answer 7

Savings / Disposable Income

Question 8

1 - MPC = ?

Answer 8

MPS

Question 9

1 - MPS = ?

Answer 9

MPC

Question 10

MPC + MPS = ?

Answer 10

1

Question 11

APS + APC = ?

Answer 11

1

Question 12

PROFIT formula

Answer 12

PROFIT = Total Revenue - Total Cost

Question 13

PRODUCTIVITY formula

Answer 13

Productivity = total output / total input

Question 14

MULTIFACTOR PRODUCTIVITY formula

Answer 14

MPF = OUTPUT/ALL INPUTS

Question 15

SINGLE FACTOR PRODUCTIVITY formula

Answer 15

SPF = Output / Single Input

Question 16

AVERAGE COST

Answer 16

AVERAGE COST = TOTAL COST / OUTPUT

Question 17

Formula for AGGREGATE DEMAND

Answer 17

AD = C + I + G + X - M

Components of aggregate demand are:
Consumption (C)
Investment (I)
Government spending (G)
Net exports (X–M).

Question 18

Formula for ‘LABOUR PRODUCTIVITY’

Answer 18

Total Output / Total Input

Question 19

Formula for ‘LABOUR FORCE PARTICIPATION RATE’

Answer 19

Labour force/population aged over 15 x (100/1)

Question 20

Formula for ‘UNEMPLOYMENT RATE’

Answer 20

No’ of persons unemployed / total labour force x 100/1