What are the formulas in microeconomics?

Important Microeconomic Formulas

  • Total Product = Quantity (Q)
  • Average Product (AP) = Total Product (Q) / Labour (L)
  • Marginal Product (MP) = Change in Total Product / Change in Labour.
  • Profit = Total Revenue (TR) – Total Costs (TC)
  • Profit = (Average Revenue – Average Cost) x Quantity.

How do you calculate R in economics?

Named after Irving Fisher, an American economist, it can be expressed as real interest rate ≈ nominal interest rate − inflation rate. In more formal terms, where r equals the real interest rate, i equals the nominal interest rate, and π equals the inflation rate, the Fisher equation is r = i – π.

What are the four microeconomics concepts?

Four key economic concepts—scarcity, supply and demand, costs and benefits, and incentives—can help explain many decisions that humans make.

What is Fisher theory?

What Is the Fisher Effect? The Fisher Effect is an economic theory created by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates. The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate.

What is PI symbol in macroeconomics?

The profitability index (PI), alternatively referred to as value investment ratio (VIR) or profit investment ratio (PIR), describes an index that represents the relationship between the costs and benefits of a proposed project.

How can I study economics in one day?

Hints

  1. Be realistic.
  2. Make sure you get plenty of food, sleep, and relaxation.
  3. Try to study in the same place at the same time every day.
  4. At the beginning of each study, period review the last thing you studied for 10 minutes.
  5. Rewrite your notes.
  6. Read your notes out loud.

What macroeconomic means?

Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.