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?
Thursday at 4pm
What is the formula 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
This law states that adding more of a variable input to fixed inputs eventually leads to decreasing marginal returns.
Law of diminishing return
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.
How do you calculate average cost?
The cost per unit is calculated by dividing total cost by quantity produced.
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.
A product with many close substitutes, like different brands of bottled water, is likely to have what level of elasticity?
Elastic demand
What is the difference between long run and short run inputs?
In the long run, firms can change all inputs, and all factors of production are considered variable
In the short run, fixed inputs such as machinery cannot be easily changed.
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 had planned to impose strict tariffs over technology imports into the US. In response, Christmas gift purchases skyrocketed in response earlier in the year. 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, artisanal coffee shops have become increasingly popular. 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 increase given change in taste and preferences. Demand would be elastic
When marginal cost is below average total cost, average total cost will do what?
Decrease
Around how much money does Mariah Carey make every year for her iconic song "All I Want for Christmas is You"?
Around 2.5 to 3 million dollars.