what does the movement from LAC1 to LAC2 indicate?
It indicates External Economies of Scale
Which diagram shows a continuous decline in the cost of living?
D
What is represented by the blue and red area
Tax Revenue
What is the price elasticity of supply when the price rises from $10 to $12?
2
What does this graph illustrate
Perfectly elastic demand
Assuming that there was no migration, which graph shows that there was an increase in population in year 1 and a decline in population in year 2
Graph Y
Identify what this graph shows
Perfectly Inelastic Demand
What is the extent is of disequilibrium in the market at a price of $2.50
Supply exceeds demand by 400,000 tonnes
what does the graph show
Maximum Price
The diagrams show Italy’s unemployment rate and GDP per head.
B
What is indicated by point R
Minimum Efficient Scale
If the government restricts immigration of labour whilst setting a minimum wage. what will be the new equilibrium from the original which was at X
B
identify the tax amount, the amount the producers pay, the amount the consumers pay, the revenue before tax and the revenue after tax
200*6; 100*6; 100*6; 400*8, 300*6
What would you label areas (1) and (2)
Spare Capacity; Full Employment
Identify the graph
Backward bending supply curve of labour indicating that after a certain wage people prefer leisure to work
what cost curve does this upward sloping curve represent?
Total Costs
identify the change in employment after a trade union negotiates a wage of W
RS
What is represented by the shaded area?
Dissavings
What costs curve does this upward sloping curve represent?
Variable Costs
What does this horizontal line represent?
Fixed Costs
What is indicated by A, B and C
Economies of scale, Minimum efficient scale, diseconomies of scale
The fact that a government has imposed a tax on cigarettes whilst also simultaneously advertising the negative health impact of smoking is shown by which diagram
C
A government has a target of keeping inflation between 2% and 3%. The diagram shows the rate of inflation over a four-year period.
D
What happens when we move from point A to point B
We gain 250 of good T and lose 250 of good R