Define productive efficiency (one sentence).
Define allocative efficiency (one sentence).
What does Pareto optimality mean? Give a one-line example.
Define dynamic efficiency — why does it matter?
Define market failure in one line.
Write the equation: Social Cost = Private Cost + External Cost and give one example (production negative externality).
Draw MSC / MPC for a negative production externality and show deadweight loss. Label axes and equilibrium.
Draw MSB / MPB for a positive externality of consumption and show underconsumption.
Give two policy responses to negative externalities (tax, regulation) — one short advantage and one short disadvantage each.
Define asymmetric information and give one example.
Define moral hazard in one sentence + short real-world example.
Explain how deadweight welfare loss arises (2–3 short bullet points).
Define total product (TP) and marginal product (MP) in one line.
Sketch SRAC and MC curves and explain why MC cuts SRAC at its minimum (one sentence).
Define returns to scale (increasing / constant / decreasing) — one-line definitions.
Define normal, subnormal, supernormal profit (one short line each).
Draw AR, MR for a monopoly and show profit-max output (label profit area).
Give two reasons why X-inefficiency might exist in a monopoly (short bullets).
Define contestable market and state one implication for pricing.
State the conditions for allocative efficiency in terms of price and marginal cost.
Explain equimarginal principle (how consumers maximise utility across goods).
Draw an indifference curve + budget line showing a price change; label income and substitution effects (brief note).
Define price discrimination (first/second/third) very briefly and give one condition needed.
Give two quick evaluation lines you can use in any micro essay (e.g., 'depends on market power; short vs long run').
Write the one-line test answer: 'Why might a monopoly innovate more than perfect competition?'
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List the components of AD (one line).
Write the multiplier formula in terms of leakages (MPS + MPT + MPM).
Explain what autonomous vs induced consumption means in one sentence.
Define inflationary gap and deflationary gap (one line each).
Draw AD–AS showing an inflationary gap; label price level and output.
Define positive output gap (one line) and give one short policy implication.
List the phases of the business cycle (one line).
Give two causes of cyclical fluctuations (one-line each).
Explain the role of automatic stabilisers in 2 short bullets.
Define inclusive economic growth (one line).
Define sustainable economic growth (one line).
Define equilibrium unemployment vs disequilibrium unemployment (one line each).
What is hysteresis in unemployment? (one line)
Define the Natural Rate of Unemployment (NRU) and list 2 determinants.
Give three policies to reduce unemployment (list; one short eval for each).
Draw the short-run Phillips curve and label it. Add a one-line note on expectations-augmented Phillips curve.
State the relationship between internal and external value of money (one line).
Explain briefly Marshall–Lerner condition (one short sentence).
What is the J-curve effect? (one line)
Calculate Gini coefficient conceptually: what does a larger Gini indicate? (one sentence)
State 3 effects of a rising exchange rate on the external economy (short bullets).
Define FDI (one sentence) and list 2 possible benefits for host country.
Give two evaluation caveats when using exchange rate policy to correct BOP (short bullets).
Write the MV = PT equation and say what each letter stands for.
Give two final AO3 sentences you can drop into any macro essay (e.g., 'effectiveness depends on time lags and openness of economy', 'magnitude matters').
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Write Contribution formula.
Write Break-even point (units) formula.
Define Margin of Safety formula.
Write Current Ratio formula and state what a low value indicates.
Write Acid Test (Quick) Ratio formula.
Write Gross Profit Margin formula (as %).
Write Net Profit Margin formula (as %).
Write ROCE formula and note what it measures.
Write Inventory turnover (times) formula (sales / average inventory or cost of goods sold / average inventory — state which you use).
Write Payback period formula conceptually (sum cash flows until initial investment recovered).
Define NPV decision rule in one line.
Give the formula for capacity utilisation as a %.
Define break-even chart (one line) and label axes for a quick sketch.
Define budget variance (favourable/adverse) in one line.
What is JIT (one line) and one condition needed.
Define TQM in one line.
Define SWOT (each letter one word) and a quick use-case sentence.
Define Ansoff Matrix (one sentence) and name its four strategies.
State 4Ps of marketing (one line).
Define market segmentation in one sentence.
Define USP (one line) and why it matters.
Define CSR in one simple sentence.
Define stakeholders (one line) and give two examples.
Define Taylor vs Maslow (one line each: core idea).
Define Herzberg two-factor (one line).
Define price skimming and penetration pricing (one line each).
Give two evaluation lines for 'usefulness of break-even analysis'.
Give two evaluation lines for 'outsourcing production'.
Give two evaluation lines for 'using debt finance vs equity finance'.
Give two evaluation lines for 'implementing JIT in a global supply chain'.
Quick application: For a cafe (low margins, local), name 3 marketing 4P tweaks (short bullets).
For a start-up with cash flow problems, give 2 immediate actions (short bullets).
For a firm with falling market share, give 2 strategic options from Ansoff (one-line justification each).
Give 2 evaluation lines for 'paying higher wages to reduce turnover'.
For an MNC setting price in two countries, give 2 reasons for price discrimination.
Give 2 evaluation phrases for a SWOT recommendation (e.g., 'depends on timing, resource availability').
Write one short recommendation for improving ROCE (1–2 lines).
List two limitations of ratio analysis when used alone.
Sketch a break-even chart: label fixed cost line, total revenue, total cost, BE point.
Draw a cash flow forecast simple table: opening balance, inflows, outflows, closing. What is a warning sign?
Sketch a tiny decision tree (two branches) and show how you'd pick the expected value.
Draw a supply chain sketch and label one risk and one mitigation.
Quick: write 3 questions you'd ask in primary market research for a new product.
Quick: outline 3 steps to improve staff performance (one-liner each).
Quick: list 3 non-financial motivators and one pro each.
Quick: give 3 KPIs a manager should track for operations.
Quick: list 3 causes of poor cash flow in small businesses.
Quick: name 3 sources of short-term finance and a one-line use-case each.
Quick: list 3 risks of overseas expansion for a small business.
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