OCR A Level Economics H460
All the essential micro and macro formulas for OCR A Level Economics — elasticities, cost & revenue, market structures, AD/AS, multiplier, inflation and exchange rate frameworks.
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Aligned with the latest 2026 syllabus and board specifications. This sheet is prepared to match your exam board’s official specifications for the 2026 exam series.
OCR A Level Economics (H460) rewards precise calculation alongside applied analysis. This formula sheet brings together every quantitative tool from Paper 1 (Microeconomics), Paper 2 (Macroeconomics), and Paper 3 (Themes in Economics) so you can revise faster and answer data response and essay questions with confidence.
Elasticity, cost, revenue and market failure formulas
Market structures, profit maximisation and labour market models
AD/AS, multiplier, inflation, BoP and exchange rate calculations
Fiscal, monetary and supply-side policy frameworks
Core microeconomic responsiveness measures used in nearly every Paper 1 question.
How responsive quantity demanded is to a change in price.
Formula
PED = %ΔQd ÷ %ΔP Interpretation
|PED| > 1 elastic | |PED| < 1 inelastic | |PED| = 1 unit elastic PED is negative due to the law of demand — examiners accept the negative sign or the absolute value.
YED
YED = %ΔQd ÷ %ΔY (positive = normal good, negative = inferior, >1 = luxury) XED
XED = %ΔQd of A ÷ %ΔP of B (positive = substitutes, negative = complements) PES
PES = %ΔQs ÷ %ΔP Used for tax incidence, subsidy and price control diagrams.
Consumer surplus
Area between demand curve and price paid Producer surplus
Area between price received and supply curve Deadweight loss
Triangle of welfare lost when output deviates from allocative efficiency Externalities (MPC, MSC, MPB, MSB) → MSB = MSC at social optimum; market produces where MPB = MPC Public goods (non-rival, non-excludable) | Information asymmetry (adverse selection, moral hazard) | Monopoly power The numerical backbone of theory of the firm questions.
AC
AC = TC ÷ Q AVC
AVC = TVC ÷ Q AFC
AFC = TFC ÷ Q (falls continuously as Q rises) MC
MC = ΔTC ÷ ΔQ MC cuts AC and AVC at their minima — a classic mark-scoring diagram point.
TR
TR = P × Q AR
AR = TR ÷ Q = P (the demand curve) MR
MR = ΔTR ÷ ΔQ Profit max where MC = MR (and MC cuts MR from below) Supernormal profit: P > AC | Normal profit: P = AC | Loss: P < AC | Shut-down (SR): P < AVC Compare structures using the same framework: P, MC, MR, AC and efficiency.
Perfect competition
P = MC = MR = AR; long-run normal profit; allocatively & productively efficient Monopoly
P > MC; supernormal profit possible long run; allocative inefficiency but possible dynamic efficiency Oligopoly
Few firms, high barriers; kinked demand curve; collusion vs non-collusion; game theory Conditions: market power, ability to separate markets, different PEDs, prevent resale 1st degree (each unit at willingness to pay) | 2nd degree (by quantity) | 3rd degree (by group) Payoff matrix → identify dominant strategies → Nash equilibrium → Prisoner's Dilemma application to cartels MRP
MRP = MPP × MR (a firm hires where MRP = MC of labour = wage) Monopsony
Single buyer of labour: wage and employment lower than competitive labour market Macro circular flow models for Paper 2.
Components
AD = C + I + G + (X − M) Shifts: change in any component shifts AD; movements caused by price level Multiplier (k)
k = 1 ÷ (1 − MPC) = 1 ÷ MPS With leakages
k = 1 ÷ (MPS + MPT + MPM) Change in output
ΔY = k × ΔAD Investment depends on the rate of change of national income — small changes in Y cause larger % changes in I SRAS shifts: wages, raw material costs, indirect taxes, productivity, exchange rate LRAS shifts: factor quantity/quality, technology, institutions, labour market flexibility Indicator definitions and key macro trade-offs.
CPI
Weighted basket of consumer goods, excludes housing costs (UK headline measure) RPI
Includes mortgage interest payments and council tax Inflation rate
((CPI₂ − CPI₁) ÷ CPI₁) × 100 U-rate
(Unemployed ÷ Labour force) × 100 Claimant count
Number of people claiming unemployment-related benefits Types: frictional, structural, cyclical (demand-deficient), seasonal, real-wage Current account
Trade in goods + trade in services + primary income + secondary income Capital & financial account
Records flows of financial capital and ownership of assets BoP must balance overall — a current account deficit is matched by a financial account surplus.
Appreciation: SPICED — Stronger Pound, Imports Cheaper, Exports Dearer Depreciation: WPIDEC — Weaker Pound, Imports Dearer, Exports Cheaper Marshall-Lerner: depreciation improves CA only if PEDx + PEDm > 1; J-curve shows time lag Paper 3 themes — comparing economic performance and choosing policy mixes.
GDP growth
((Real GDP₂ − Real GDP₁) ÷ Real GDP₁) × 100 GDP per capita
GDP ÷ Population — better welfare comparison than headline GDP Real vs nominal
Real GDP = Nominal GDP × (100 ÷ price index) HDI
Geometric mean of life expectancy, education (mean & expected years schooling) and GNI per capita indices Inequality
Lorenz curve plots cumulative % income vs cumulative % population; Gini = A ÷ (A + B); 0 = perfect equality, 1 = total inequality Fiscal
Government spending and taxation — expansionary cuts T or raises G; contractionary the reverse Monetary
Bank Rate, QE, forward guidance — Bank of England 2% CPI inflation target Phillips curve
Short-run trade-off between inflation and unemployment; long-run vertical at NAIRU Laffer curve
Tax revenue rises with rates up to T*, then falls as disincentives dominate Market-based: tax cuts, deregulation, privatisation, labour market reform Interventionist: education & training, infrastructure, R&D subsidies Boost your Cambridge exam confidence with these proven study strategies from our tutoring experts.
OCR awards method marks even when the final answer is wrong — always state the formula, sub in values, and label units.
Every analysis paragraph should be supported by a labelled diagram. Title axes, label curves, mark equilibrium and shifts clearly.
Build chains of reasoning: cause → mechanism → consequence → impact on stakeholders. Avoid one-line assertions.
Use 'it depends on…' factors: time period, elasticity, size of change, ceteris paribus assumptions, opportunity cost.
Quick answers about this free PDF and how to use it for exam revision and active recall.
Yes. This Tutopiya formula sheet is free to use and you can download it as a PDF from this page for offline revision. There is no payment or account required for the PDF download.
This page groups key Economics formulas in one place for revision. Master OCR A Level Economics (H460) with this 2026 formula sheet. Covers elasticities, cost & revenue formulas, market structures, AD/AS, multiplier, inflation, exchange rates and policy frameworks. Always cross-check with your official syllabus and past papers for your exam session.
No. In the exam you must follow only what your exam board allows in the hall—usually the official formula booklet or data sheet where provided. This page is a revision and teaching aid, not a replacement for board-issued materials.
It is written for students preparing for assessments at Post-Secondary in Economics, including classroom revision, homework support, and independent study. Teachers and tutors can also share it as a quick reference.
Work through past paper questions, quote the correct formula before substituting values, and check units and notation every time. Pair this sheet with timed practice and mark schemes so you see how examiners expect working to be set out.
Explore Tutopiya’s study tools, past paper finder, and revision checklists linked from our tools hub, or book a trial lesson with a subject specialist for personalised support alongside this formula reference.
Build calculation fluency, diagram precision and exam-ready evaluation with an experienced OCR Economics tutor. We focus on Paper 1, 2 and 3 technique using the official mark scheme.
Pair this formula sheet with past papers, revision checklists, and planners — all free on our study tools hub.
This formula sheet aligns with OCR A Level Economics (H460) 2026 syllabus content across Papers 1, 2 and 3.
Always show the formula, substitution and units in numerical answers — and link calculations back to the economic context.