Quick Revision

The econs exam si in about 45 minutes time. I'm getting all jittery. Sigh. I dunno how well I'm gonna do and I hope that the effort I put into stuyding (not much, but at least some) will help a little. I better go get ready to leave soon. But a last minute recap on econs.

Topic 5: Production & Cost
AVC= TVC/TP
AFC=TFC/TP
ATC or AC=TC/TP
MC=Change in TVC or TC/Change in TP
MP=Change in TP/Change in variable input (labour)
AP=TP/Variable input

Economies of scale -> Constant returns to scale -> Diseconomies of scale

Topic 6: Market Structure
4 types of market structures:
Perfect competition (PC)
Monopoly (M)
Monopoly competition (MC)
Oligopoly (O)

Profit maximising/Loss minimising out put level:
Can be found when MR=MC (applies to ALL market structures)

In short run,
normal profit = covering all costs
economic profit = P>ATC, TR>TC
economic loss = P -/+Disposable income -> -/+ Consumption, Investment or Govt spending by a multiple -> -/+Aggregate Demand -> -/+Income by a multiple

Topic9: The World Economy and Emerging Trends
Current Account
Export of goods
Import of goods
Balance of Trade
Export of services
Import of services
Balance of Services
Net investment income
Net Transfers
Balance of Current Account

Capital Account
Foreign purchase of assets in country
Country's purchase of foreign assets
Balance of Capital Account

Balance of Payment Position
Official Reserves
Overall Balance of Payment Position

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