ECONOMICS A-LEVEL: PAPER 3 DIAGRAMS EXAM QUESTIONS AND ANSWERS 100% CORRECT!!

Production possibility frontier: - ANSWER (long term growth would be rightward shift) Economic cycle: - ANSWER (curved line is actual growth compared to trend growth) Lorenz curve: - ANSWER Laffer curve: - ANSWER Comparative advantage PPF: - ANSWER Tariff diagram: - ANSWER Exchange rate diagram: - ANSWER J-curve diagram: - ANSWER (shows the effect of inelastic demand for imports and exports in the SR) (2) What does a unit elastic [+/- 1] diagram look like? - ANSWER (2) What does a perfectly inelastic diagram look like? - ANSWER (2) What does a perfectly elastic diagram look like? - ANSWER (2) Draw and describe a producer/consumer surplus diagram: - ANSWER (4) Draw and describe a perfect competition diagram LR: - ANSWER (just remember right shift supply curve) (4) Draw and describe a natural monopoly diagram: - ANSWER (6) What does an ad valorem tax look like graphically? - ANSWER (6) What does a specific tax look like graphically? - ANSWER (6) Describe and draw a minimum price diagram: - ANSWER (rectangle = government expenditure)