∆ 𝑖𝑛 𝑈𝑡𝑖𝑙𝑖𝑡𝑦

1. Marginal Utility =
∆ 𝑖𝑛 𝑢𝑛𝑖𝑡𝑠
𝑀𝑈𝑥 𝑀𝑈𝑦
2. Equi-marginal Principle = =
𝑃𝑥 𝑃𝑦
𝑀𝑈𝑥
3. Marginal Rate of Substitution =
𝑀𝑈𝑦
𝑃𝑥
4. Price Ratio =
𝑃𝑦
𝑀𝑈𝑥 𝑃𝑥
5. Consumer’s Equilibrium = = 𝑃𝑦
𝑀𝑈𝑦

6. Total Product = Total Output

𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡
7. Average Product =
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑙𝑎𝑏𝑜𝑟
∆ 𝑖𝑛 𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡
8. Marginal Product =
∆ 𝑖𝑛 𝑙𝑎𝑏𝑜𝑟
9. Total Cost = 𝑉𝑎𝑟𝑖𝑏𝑙𝑒 𝐶𝑜𝑠𝑡 + 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡
10. Variable Cost = 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 − 𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡
11. Fixed Cost = 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡
12. Average Total Cost = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠

13. Average Total Cost = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡 + 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡
𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡
14. Average Variable Cost = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠
𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡
15. Average Fixed Cost = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠
∆ 𝑖𝑛 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡
16. Marginal Cost =
∆ 𝑖𝑛 𝑢𝑛𝑖𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑢𝑛𝑒
17. Average Revenue = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠
∆ 𝑖𝑛 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
18. Marginal Revenue = ∆ 𝑖𝑛 𝑢𝑛𝑖𝑡𝑠

19. Profit = 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡

 𝑀𝑃𝐿 𝑀𝑃𝐾
20. Producer’s Equilibrium = =
𝑃𝐿 𝑃𝐾

21. Social Cost = 𝑃𝑟𝑖𝑣𝑎𝑡𝑒 𝐶𝑜𝑠𝑡 + 𝐸𝑥𝑡𝑒𝑟𝑛𝑎𝑙 𝐶𝑜𝑠𝑡

22. Social Benefit = 𝑃𝑟𝑖𝑣𝑎𝑡𝑒 𝐵𝑒𝑛𝑒𝑓𝑖𝑡 + 𝐸𝑥𝑡𝑒𝑟𝑛𝑎𝑙 𝐵𝑒𝑛𝑒𝑓𝑖𝑡
23. Allocative efficiency = 𝑀𝑎𝑟𝑔𝑖𝑛𝑎𝑙 𝑆𝑜𝑐𝑖𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝑀𝑎𝑟𝑔𝑖𝑛𝑎𝑙 𝑆𝑜𝑐𝑖𝑎𝑙 𝐵𝑒𝑛𝑒𝑓𝑖𝑡
24. Marginal Revenue Product = 𝑀𝑎𝑟𝑔𝑖𝑛𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 × 𝑀𝑎𝑟𝑔𝑖𝑛𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
25. Real Income = 𝑁𝑜𝑚𝑖𝑛𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒 − 𝐼𝑛𝑓𝑙𝑎𝑡𝑖𝑜𝑛 𝑅𝑎𝑡𝑒
26. Injections/Aggregate expenditure = 𝐶 + 𝐼 + 𝐺 + 𝑋
27. Withdrawals/Income = 𝐶 + 𝑆 + 𝑇 + 𝑀
28. Aggregate demand/GDP = 𝐶 + 𝐼 + 𝐺 + (𝑋 − 𝑀)
29. Macroeconomic Equilibrium = 𝑌 = 𝐴𝐸 , or,
30. Macroeconomic equilibrium = 𝐶 + 𝐼 + 𝐺 + 𝑋 = 𝐶 + 𝑆 + 𝑇 + 𝑀
31. 2 sector economy = 𝐶 + 𝐼 = 𝐶 + 𝑆
32. 3 sector economy = 𝐶 + 𝐼 + 𝐺 = 𝐶 + 𝑆 + 𝑇
33. 4 sector economy = 𝐶 + 𝐼 + 𝐺 + 𝑋 = 𝐶 + 𝑆 + 𝑇 + 𝑀
∆ 𝑖𝑛 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛
34. Marginal propensity to consume =
∆ 𝑖𝑛 𝑖𝑛𝑐𝑜𝑚𝑒
∆ 𝑖𝑛 𝑠𝑎𝑣𝑖𝑛𝑔
35. Marginal propensity to save =
∆ 𝑖𝑛 𝑖𝑛𝑐𝑜𝑚𝑒
∆ 𝑖𝑛 𝑡𝑎𝑥
36. Marginal propensity of tax =
∆ 𝑖𝑛 𝑖𝑛𝑐𝑜𝑚𝑒
∆ 𝑖𝑛 𝑖𝑚𝑝𝑜𝑟𝑡 𝑒𝑥𝑝𝑒𝑛𝑑𝑖𝑡𝑢𝑟𝑒
37. Marginal propensity to import =
∆ 𝑖𝑛 𝑖𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛
38. Average propensity to consume =
𝑇𝑜𝑡𝑎𝑙 𝑖𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑣𝑖𝑛𝑔
39. Average propensity to save =
𝑇𝑜𝑡𝑎𝑙 𝑖𝑛𝑐𝑜𝑚𝑒
40. Consumption function = 𝐶 + 𝑏𝑌
41. Saving Function = −𝐶 + 𝑎𝑌
1
42. Multiplier =
(1−𝑀𝑃𝐶)

43. Quantity Theory of Money = 𝑀𝑉 = 𝑃𝑇

 1
44. Credit Multiplier =
𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑅𝑒𝑠𝑒𝑟𝑣𝑒 𝑅𝑎𝑡𝑖𝑜
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑒𝑜𝑝𝑙𝑒 𝑢𝑛𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑
45. Unemployment rate =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑙𝑎𝑏𝑜𝑟 𝑓𝑜𝑟𝑐𝑒
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑒𝑜𝑝𝑙𝑒 𝑏𝑒𝑙𝑜𝑤 16 +𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑒𝑜𝑝𝑒𝑙 𝑎𝑏𝑜𝑣𝑒 65
46. Dependency ratio =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑒𝑜𝑝𝑙𝑒 𝑎𝑔𝑒𝑑 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 16−65

47. GDP at market price = 𝐺𝐷𝑃 𝑎𝑡 𝑓𝑎𝑐𝑡𝑜𝑟 𝑐𝑜𝑠𝑡 − 𝑠𝑢𝑏𝑠𝑖𝑑𝑖𝑒𝑠 + 𝑡𝑎𝑥𝑒𝑠

48. GDP at factor cost = 𝐺𝐷𝑃 𝑎𝑡 𝑚𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 + 𝑠𝑢𝑏𝑠𝑖𝑑𝑖𝑒𝑠 − 𝑡𝑎𝑥𝑒𝑠
49. GNP = 𝐺𝐷𝑃 + 𝑛𝑒𝑡 𝑝𝑟𝑜𝑝𝑒𝑟𝑡𝑦 𝑖𝑛𝑐𝑜𝑚𝑒 𝑓𝑟𝑜𝑚 𝑎𝑏𝑟𝑜𝑎𝑑
50. GNI = 𝑆𝑢𝑚 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑜𝑢𝑡𝑝𝑢𝑡 𝑏𝑦 𝑟𝑒𝑠𝑖𝑑𝑒𝑛𝑡 𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑟𝑠 +
𝑛𝑒𝑡 𝑟𝑒𝑐𝑒𝑖𝑝𝑡𝑠 𝑜𝑓 𝑝𝑟𝑖𝑚𝑎𝑟𝑦 𝑖𝑛𝑐𝑜𝑚𝑒 𝑓𝑟𝑜𝑚 𝑎𝑏𝑟𝑜𝑎𝑑 + 𝑎𝑛𝑦 𝑡𝑎𝑥𝑒𝑠 −
𝑠𝑢𝑏𝑠𝑖𝑑𝑖𝑒𝑠.