Formulae

Question 1

Productivity

Answer 1

Inputs per time period

Question 2

Capacity Utilisation

Answer 2

Actual level of output
—————————————– X 100
Maximum possible output

Closer to full capacity
-> Fixed costs decrease

Question 3

Average costs per unit

Answer 3

Total output in period (units)

Question 4

Income elasticity of demand

YED

Answer 4

%∆ in income (Y)

Question 5

NOO

Answer 5

 Original

Question 6

Total costs

Answer 6

Fixed costs
+
Variable costs

Question 7

Average variable costs

Answer 7

      Output

Question 8

Average fixed costs

Answer 8

    Output

Question 9

Average total costs

Answer 9

Average variable costs
+
Average fixed costs

Question 10

Gross Domestic Product

GDP

Answer 10

C + I + G + (X - M)

Consumption of goods and services +
Investment +
Government spending +
(Exports - Imports)