political economy formulas

growth rate

(present - past) / past

GDP

C (consumption) + I (investment) + G (government) + NX ( net exports)

disposable income

(earnings + social benefits) - (taxes + inflation)

price elasticity of demand

% change in quantity demanded / % change in price

amount of goods

q (quantity) gives the revenue the price at which the output is sold

revenue

q (quantity) x p (price)

profit

revenue - cost of production

average total cost

cost (fixed + variable) / quantity of output

marginal cost

total change in the cost of producing more goods / change in the number of goods produced

margin

revenue - costs

capital productivity

the ratio between the quantities produced and the capital used to obtain this level of output

labor productivity

either as the ratio of y (productivity is the ratio of output) to the number of hours worked (hourly labor productivity) or as the ratio of y to the number of people employed (per capita productivity)

economic globalisation/ international trade

(world exports + imports) / world GDP

natural price of a commodity

sum of all the costs (materials, production e.t.c)

productivity

total amount of production / number of hours of number of people working