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JAIBP Economics Flashcards
54 question-and-answer cards covering Economics as it is examined in JAIBP. 24 of them are printed below, taken from across the deck — no signup, no paywall on the preview.
24 sample cards from the Economics deck
Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.
State the Law of Diminishing Returns (variable proportions).
As more units of a variable input are added to fixed inputs, beyond a point the marginal product of the variable input eventually declines.
Write the formulas for Average Product (AP) and Marginal Product (MP) of labour.
AP = Total Product / Quantity of labour; MP = change in Total Product / change in quantity of labour (ΔTP/ΔL).
Distinguish fixed costs from variable costs.
Fixed costs do not change with output (e.g., rent); variable costs change directly with the level of output (e.g., raw materials).
Give the formulas for Average Total Cost (ATC), Average Variable Cost (AVC), and Marginal Cost (MC).
ATC = Total Cost / Quantity; AVC = Total Variable Cost / Quantity; MC = ΔTotal Cost / ΔQuantity.
Why is the short-run average cost curve U-shaped?
Initially average cost falls due to increasing returns and spreading of fixed costs, then rises due to diminishing returns to the variable factor.
What is the relationship between the Marginal Cost curve and the ATC/AVC curves?
The MC curve cuts both the ATC and AVC curves at their minimum points; when MC is below average cost it pulls it down, when above it pulls it up.
What are economies of scale?
Long-run reductions in average cost as a firm increases its scale of output (e.g., through specialization, bulk buying, and better technology); diseconomies of scale are rising average costs at large scale.
State the four key features of a perfectly competitive market.
Many buyers and sellers, a homogeneous (identical) product, free entry and exit, and perfect information; firms are price takers.
State the profit-maximizing output rule for any firm.
A firm maximizes profit by producing where Marginal Revenue equals Marginal Cost (MR = MC), with MC rising through that point.
In perfect competition, what is the relationship between price, marginal revenue, and average revenue?
Price = Marginal Revenue = Average Revenue, because the firm faces a perfectly elastic (horizontal) demand curve at the market price.
Define a monopoly and state its main features.
A monopoly is a market with a single seller of a product with no close substitutes and high barriers to entry; the monopolist is a price maker.
Why is a monopolist's marginal revenue less than price?
Because the monopolist faces a downward-sloping demand curve and must lower the price on all units sold to sell an additional unit, so MR falls below price (AR).
List the key features of monopolistic competition.
Many firms, differentiated products, relatively free entry and exit, and some price-setting power; each firm faces a downward-sloping demand curve.
Why do monopolistically competitive firms earn only normal profit in the long run?
Because free entry and exit eliminate economic profits; new firms enter when profits exist until each firm earns just normal profit (price = average cost).
Define an oligopoly and state its defining feature.
An oligopoly is a market dominated by a few large firms whose key feature is mutual interdependence — each firm's decisions depend on rivals' expected reactions.
What does the kinked demand curve model explain in oligopoly?
It explains price rigidity: rivals match price cuts but not price rises, making demand more elastic above the prevailing price and less elastic below it, so firms avoid changing price.
Define National Income (GNP) and the three approaches to measuring it.
National income is the total money value of all final goods and services produced by a nation in a year; it is measured by the product (value-added), income, and expenditure approaches, which yield equal totals.
Write the expenditure-method formula for GDP.
GDP = C + I + G + (X − M), where C is consumption, I is investment, G is government spending, and (X − M) is net exports.
Distinguish GDP from GNP, and nominal from real GDP.
GDP measures output produced within a country's borders; GNP measures output by a nation's residents regardless of location (GNP = GDP + net factor income from abroad). Nominal GDP is valued at current prices; real GDP is valued at constant (base-year) prices to remove inflation.
In the Keynesian model, what determines equilibrium national income, and state the condition.
Equilibrium national income is determined where aggregate demand equals aggregate output (or planned saving equals planned investment, S = I); income adjusts until these are equal.
Give the formulas for the spending multiplier (k) in terms of MPC and MPS.
Multiplier k = 1 / (1 − MPC) = 1 / MPS, where MPC is the marginal propensity to consume and MPS is the marginal propensity to save (MPC + MPS = 1).
Define inflation and distinguish demand-pull from cost-push inflation.
Inflation is a sustained rise in the general price level. Demand-pull inflation arises when aggregate demand exceeds aggregate supply; cost-push inflation arises when rising input costs (wages, raw materials) push up prices.
What is the unemployment rate formula, and name the main types of unemployment?
Unemployment rate = (Number of unemployed / Labour force) × 100. Main types: frictional, structural, cyclical, and seasonal unemployment.
What does the short-run Phillips Curve show about inflation and unemployment?
It shows a short-run inverse (trade-off) relationship: lower unemployment is associated with higher inflation and vice versa.
What this deck covers
The Economics deck follows the JAIBP Economics syllabus — 6 chapters and 19 topics — so questions land on material that is genuinely examinable rather than trivia around it. That works out to roughly 9.0 cards per chapter.
Answers are written to be recallable, not just readable — averaging about 156 characters, which is long enough to carry the reasoning and short enough to say out loud.
A deck like this earns its keep on the second and third pass. Read the syllabus first so you know the shape of the subject, then use the cards to find the specific facts that have not stuck.
Economics flashcards FAQ
How many Economics flashcards are in this JAIBP deck?
54 cards. This page previews 24 of them, sampled evenly across the deck so you can judge the difficulty before installing anything.
Are these JAIBP flashcards free?
Yes. The preview here is free to read with no signup, and the full 54-card deck is free inside the Examius app.
What do the Economics cards cover?
They follow the JAIBP Economics syllabus — 6 chapters and 19 topics — so the questions track what is actually examinable.
How should I use these flashcards?
Read the syllabus first so you know the shape of the subject, then drill the deck. Examius schedules each card with spaced repetition, so cards you keep missing come back sooner and ones you know drift further apart.