Diagrams

Question 1

Multiplier Effect

Answer 1

Question 2

Trade Cycle

Question 3

Positive & Negative Output Gaps

Answer 3

Question 4

Kuznets Curve

Answer 4

Question 5

Phillips Curve

Answer 5

Question 6

PPF - Maximum Productive Potential of an Economy Depicted on a PPF?

Answer 6

At X or Y, or any other point along the PPF curve.

Question 7

PPF - Opportunity Cost

Answer 7

The steepness of the curve shows how big the opportunity cost is.
e.g. Big opportunity cost of consumer goods when moving from X to Y. +1 capital goods but -3 Consumer goods.

Question 8

PPF - Economics Growth & Decline

Answer 8

Question 9

PPF - Efficient & Inefficient Allocation of Resources

Answer 9

Productive efficiency occurs at any point along the diagram, such as X or Y. There is productive inefficiency when production is within the PPF and not along with it.

Allocative effiency occurs where the particular mix of goods being produced represents the allocation that society most desires, so only occurs at one point along the PPF.

Question 10

PPF - Possible & Unobtainable Production

Answer 10

Possible production is anywhere within or along the PPF
Unobtainable or future production is anywhere outside the PPF

Question 11

Marginal Utility & Total Utility

Answer 11

Question 12

Substitute Products

Answer 12

Question 13

Complementary Products

Answer 13

Question 14

Elasticity of Demand & Supply

Answer 14

Question 15

Incidence of Subsidy

Answer 15

Question 16

Consumer & Producer Surplus

Answer 16

Question 17

Tradable Pollution Permits

Answer 17

Question 18

Externalities (Underconsumption, Overconsumption, Underproduction, Overproduction)

Answer 18

Underconsumption, Overconsumption, Underproduction, Overproduction

Question 19

Minimum Price

Answer 19

Question 20

Incidence of Tax

Answer 20

Question 21

Specific Tax

Answer 21

Question 22

Ad Valorem Tax

Answer 22

Question 23

Maximum Price

Answer 23

Question 24

Expansionary & Contractionary Fiscal Policy & Monetary Policy

Answer 24

Question 25

Supply Side Policies

Answer 25

Question 26

Laffer Curve

Answer 26

Question 27

<div>Proportional, Regressive, Progressive Taxes</div>

Answer 27

Question 28

Lorenz Curve

Answer 28

Question 29

J Curve

Answer 29

Question 30

Absolute & Comparative Advantage

Answer 30

Question 31

Perfect Competition

Profit Maximisation
Long Run Position
Normal Profit
Dynamic Inefficiency
Productive Efficiency
Allocative Efficiency

Answer 31

Question 32

Perfect Competition - Erosion ofShort Run Supernormal Profits & Losses

Answer 32

Question 33

Perfect Competition - Increase & Decrease in Fixed Costs

Answer 33

Question 34

Perfect Competition - Increase & Decrease in Variable Costs

Answer 34

Question 35

Monopolistic Competition:

Profit Maximisation
Long Run Position
Normal Profit
Dynamic Inefficiency

Answer 35

Question 36

Shutdown Point

Answer 36

(AVC and AR are touching)

Question 37

Oligopoly, Duopoly, Monopoly:

Long-Run Position
Profit Maximisation
Supernormal Profit
Dynamic Efficiency

Answer 37

Question 38

Third Degree Price Discrimination

Answer 38

Question 39

Natural Monopoly

Answer 39

Question 40

Kinked Demand Curve

Answer 40

Question 41

Payoff Matrix (Regular)

Answer 41

Question 42

Payoff Matrix (Advertising)

Answer 42

Question 43

Minimum Wage

Answer 43

Question 44

Maximum Wage

Answer 44

Question 45

Derived Demand

Answer 45

Question 46

X-Inefficiency

Answer 46

Question 47

Tariff

Answer 47

Question 48

Quota

Answer 48

Question 49

Subsidy

Answer 49

Question 50

Buffer Stock Scheme

Answer 50

Question 51

Sales Maximisation

Answer 51

Question 52

Revenue Maximisation

Answer 52

Question 53

Bi-lateral Monopoly

Answer 53

Question 54

Trade Diversion

Answer 54