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Economics Formulae Guide

The document provides a list of economic terms along with their corresponding formulae, including concepts such as price elasticity of demand (PED), Gini coefficient, and marginal propensity to consume (MPC). It also includes calculations for productivity, income measures, and cost structures. The information is structured in a clear format for reference in economic analysis.

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61 views2 pages

Economics Formulae Guide

The document provides a list of economic terms along with their corresponding formulae, including concepts such as price elasticity of demand (PED), Gini coefficient, and marginal propensity to consume (MPC). It also includes calculations for productivity, income measures, and cost structures. The information is structured in a clear format for reference in economic analysis.

Uploaded by

yazdaan2008
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Worksheet 2: Formulae answers

Economic term Formulae

percentage change in quantity demanded


PED =
percentage change in price

percentage change in quantity demanded


MED =
percentage change in income

percentage change in quantity demanded of good X


CED =
percentage change in quantity demanded of good Y

export price index


TOT = × 100
import price index

output produced
Labour productivity =
number of labour hours

a
, where a = area above Lorenz curve and
Gini coefficient = a + b
b = area below Lorenz curve

number of unemployed people


Unemployment rate = × 100
labour force

change in tax amount


MRT =
change in income

tax amount
ART = × 100
total income

change in consumption
MPC =
change in income

change in tax
MPT =
change in income

change in imports
MPM =
change in income

consumption
APC =
income

saving
APS =
income

1
Expenditure multiplier =
marginal popoensity to withdraw

© Cambridge University Press & Assessment 2023 vX 3


Economic term Formulae

Real income = Money income × DGP deflator

price index of base year


GDP deflator =
price index of current year

wage/hour
Unit labour cost =
output/hour

change in total cost


MC =
change in output

total output
AP =
labour employed

MRP = Sale Price × MR

change in total output


MP =
change in number of workers

MEW = Real per capita income + Leisure time – Negative externalities

© Cambridge University Press & Assessment 2024 v2 4

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