GDP
What is the difference between real GDP and nominal GDP?
Real GDP has been adjusted for inflation or changes in price levels. Nominal measured using the prices at the time they were produced.
What are the non-price determinants of demand and supply?
Demand:
Taste and Preferences
Expectation of buyers
Number of buyers
Price of related Goods
Money Income
Supply:
Technology
Expectation of sellers
Number of sellers
Price of related goods
factor/resource price
What is price elasticity of demand?
Price elasticity of demand refers to the consumers’ responsiveness to a change in the price of a good.
These are costs that do not change with the level of output, such as rent or insurance.
Fixed Costs
When is the Econ Common Test?
Wednesday at 4pm
What is the formular for GDP Expenditure?
GDP = C+I+G+(X-M)
If demand for a good decrease while its supply increase, what happened to the equilibrium?
Lower equilibrium price and same equilibrium quantity
What is the formula for total revenue?
Price x Quantity
What does it mean to be in full employment?
No cyclical unemployment. Natural rate of unemployment
Who was the dude who created the concept of free market economy?
Adam Smith
Why isn't GDP a good measure of standard of living?
Income inequality
When a surplus exists in a free market, what happens?
Producers will reduce prices in an attempt to decrease excess inventory.
If a good has a price elastic demand, it means that a percentage decrease in the price of the good will result in what?
An even larger percentage increase in the quantity demanded of the good and total revenue of the good will increase.
This law states that adding more of a variable input to fixed inputs eventually leads to decreasing marginal returns.
Law of diminishing return
What is Ms. Stephanie's favorite Pokemon?
Eevee
Calculate the real gdp
Nominal GDP: $125 billion
Price Deflator: 105
Real GDP: $119.05 billion
There was a recent viral Tiktok on a cucumber recipe. This led to a lot of people trying out the recipe. What is the demand of cucumbers? Sketch the supply and demand curve of the cucumber.
Demand curve shifts right due to change in taste and preference for cucumbers.
Why is medicine considered a price inelastic demand good?
Necessity
On a scale of low to high market power, put the four market structures in order?
Perfect, monopolistic, oligopoly, monopoly
How many MRT Stations are on the East West line? And how many km?
35 MRT and 57 km
Explain the circular flow model
Check ya tutorial :D
The US is planning on imposing strict tariffs over technology imports into the US. As of recently, Christmas gift purchases have skyrocketed in response. Why?
Expectation of buyers that prices will increase in the future, so they will buy now. Demand will increase in the present causing a right shift in demand
Millions of people around the world drink coffee everyday. In recent years, climate change has caused coffee bean plantations to be negatively affected. At the same time, matcha has been an increasingly popular alternative for people to consumer caffeine. Using a supply and demand diagram, explain what happened to coffee beans (hint: identify the non-price determinants of demand and/or supply. identify the price elasticity of demand.)
Supply decrease due to decrease in number of sellers from climate. Demand decrease given change in taste and preferences. Demand would be inelastic
When marginal cost is below average total cost, average total cost will do what?
Decrease
In the recent March 2025 meeting, what did the US Federal Reserve decide to do to interest rates?
Leave interest rates as unchanged