GDP
Market Equilibrium
Price Elasticity
Other topics
Fun Facts
100

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.

100

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

100

What is price elasticity of demand?

Price elasticity of demand refers to the consumers’ responsiveness to a change in the price of a good.

100

These are costs that do not change with the level of output, such as rent or insurance.

Fixed Costs

100

When is the Econ Common Test?

Wednesday at 4pm

200

What is the formular for GDP Expenditure?

GDP = C+I+G+(X-M)

200

If demand for a good decrease while its supply increase, what happened to the equilibrium?

Lower equilibrium price and same equilibrium quantity

200

What is the formula for total revenue?

Price x Quantity

200

What does it mean to be in full employment?

No cyclical unemployment. Natural rate of unemployment

200

Who was the dude who created the concept of free market economy?

Adam Smith

300

Why isn't GDP a good measure of standard of living?

Income inequality

300

When a surplus exists in a free market, what happens?

Producers will reduce prices in an attempt to decrease excess inventory.

300

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.

300

This law states that adding more of a variable input to fixed inputs eventually leads to decreasing marginal returns.

Law of diminishing return

300

What is Ms. Stephanie's favorite Pokemon?

Eevee

400

Calculate the real gdp
Nominal GDP: $125 billion
Price Deflator: 105


Real GDP: $119.05 billion

400

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.

400

Why is medicine considered a price inelastic demand good?

Necessity

400

On a scale of low to high market power, put the four market structures in order?

Perfect, monopolistic, oligopoly, monopoly

400

How many MRT Stations are on the East West line? And how many km?

35 MRT and 57 km

500

Explain the circular flow model

Check ya tutorial :D

500

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

500

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

500

When marginal cost is below average total cost, average total cost will do what?

Decrease

500

In the recent March 2025 meeting, what did the US Federal Reserve decide to do to interest rates?

Leave interest rates as unchanged