Formula Flashcards
Real GDP
(Nominal GDP / Price Index) × 100
Real GDP per Capita
(((Nominal GDP / Price Index) × 100) / Population) × 100
Index Number
(Raw Number / Base Year Raw Number) × 100
Weighted Price Index
- Convert Prices into Index Form
- Multiply Index Numbers by Weight
- Add up all Weighted Prices
- Divide by Total Number of Weights
Bond Yield
Yield = Coupon / Market Price × 100
Total Cost
Total Fixed Cost + Total Variable Cost
OR
Average Cost × Quantity
Total Fixed Cost
Total Cost - Total Variable Cost
OR
Average Fixed Cost × Quantity
Total Variable Cost
Total Cost - Total Fixed Cost
OR
Average Variable Cost × Quantity
Average Cost
Total Cost / Quantity
OR
Average Fixed Cost + Average Variable Cost
Marginal Cost
Change in Total Cost / Change in Quantity
Average Product
Total Product / Quantity of Labour
Marginal Product
Change in Total Product / Change in Quantity of Labour
Total Revenue
Price × Quantity
Average Revenue
Total Revenue / Quantity = Price
Marginal Revenue
Change in Total Revenue / Change in Quantity
Profit
Total Revenue - Total Cost
Supernormal Profit
Average Revenue > Average Cost
Subnormal Profit
Average Revenue < Average Cost
Profit Max
Marginal Revenue = Marginal Cost
Revenue Max
Marginal Revenue = 0
Average Cost = Average Revenue
Normal Profit
Sales Max
Breakeven
Entry Limit Price
Allocative Efficiency
Demand = Supply
Marginal Social Benefit = Marginal Social Cost
Price = Marginal Cost
Productive Efficiency
Minimum point on Average Cost
Average Cost = Marginal Cost
X Efficiency
At any point on Average Cost
