Economics Project AS level Diagrams By Annika Deshmukh Annika Parag Deshmukh CH-5 Production possibility curves Straight line production possibility curves showing constant opportunity cost. 2 Annika Parag Deshmukh A curved production possibility curve showing increasing opportunity cost. Shifts in production possibility curves Increase in productive capacity (Curve shifts outward) 3 Annika Parag Deshmukh Decrease in productive capacity (Curve shifts inwards) Pivotal curve -The amount of resources dedicated towards goods has remained constant, however the amount dedicated to services has increased. 4 Annika Parag Deshmukh Classification of goods and services Excludable Nonexcludable Rival NonRival Private good Quasi-public good Quasi-public good Public good CH-7 Demand and Supply Curves Shifts in the Demand Curve A shift to the right-demand increases 5 Annika Parag Deshmukh A shift to the left-demand decreases Shift in the supply curve A shift to the right-supply increases 6 Annika Parag Deshmukh A shift to the left-supply decreases CH-8 Price elasticity, income elasticity and cross elasticity of Demand 7 Annika Parag Deshmukh Perfectly price elastic demand curve A perfectly price inelastic demand curve 8 Annika Parag Deshmukh Unit elastic demand curve PED changes along a demand curve 9 Annika Parag Deshmukh Influence of PED revenue when price changes Inelastic- increase in price results in increase in revenue Elastic-decrease in price results in increase in revenue CH-9 Price elasticity of supply Inelastic and elastic supply curves 10 Annika Parag Deshmukh Inelastic supply Elastic supply Two farther supply curves 11 Annika Parag Deshmukh Perfectly inelastic Perfectly elastic supply CH- 10 The interaction of demand and supply 12 Annika Parag Deshmukh Equilibrium price and quantity Disequilibrium-Excess supply which causes producers to reduce their prices 13 Annika Parag Deshmukh Disequilibrium- Excess supply causes producers to increase price Increase in demand and supply 14 Annika Parag Deshmukh WELL-KNOWN BRAND OWN- LABEL BRAND AN INCREASE IN THE PRICE OF A SUBSTITUTE 15 Annika Parag Deshmukh Football shirts Football shorts A fall in the price of a complement 16 Annika Parag Deshmukh HOTEL SERVICES HOTEL WORKERS DERIVED DEMAND 17 Annika Parag Deshmukh PROCESSED SOYA BEANS SOYA ANIMAL FOOD JOINT SUPPLY CH-11 Consumer and producer surplus 18 Annika Parag Deshmukh Consumer surplus Consumer surplus Change in consumer surplus as price decreases 19 Annika Parag Deshmukh Change in consumer surplus for inelastic and elastic demand curves Inelastic Elastic 20 Annika Parag Deshmukh Producer surplus Change in producer surplus for inelastic and elastic supply curves Inelastic 21 Annika Parag Deshmukh Elastic Net benefit to society CH-13 Methods and effects of government intervention in markets 22 Annika Parag Deshmukh The effects of imposing a specific indirect tax Incidence depends on elasticity of demand Elastic supply-inelastic demand 23 Annika Parag Deshmukh Inelastic supply-elastic demand The effects of introducing a subsidy 24 Annika Parag Deshmukh The incidence of a subsidy The effects of maximum price control 25 Annika Parag Deshmukh Effects of minimum price control CH-14 Addressing income wealth and inequality Effects on introducing a minimum wage 26 Annika Parag Deshmukh CH-16 Introduction to the circular flow of income A simplified circular flow model The circular flow of income in a mixed economy 27 Annika Parag Deshmukh The circular flow of income in an open economy Equilibrium income in a two-sector economy 28 Annika Parag Deshmukh A rise in investment in a two-sector economy Equilibrium in a four-sector economy 29 Annika Parag Deshmukh Impact of a rise in taxation on equilibrium income in a four-sector economy CH-17 Aggregate demand and aggregate supply analysis The aggregate demand curve 30 Annika Parag Deshmukh An increase in aggregate demand A short run aggregate supply curve 31 Annika Parag Deshmukh A decrease in short run aggregate supply The Keynesian long-run aggregate supply curve 32 Annika Parag Deshmukh The new classical long-run aggregate supply curve A new classical view of an increase in aggregate demand 33 Annika Parag Deshmukh Macroeconomic equilibrium, the point of equilibrium is whare AD and AS intersect CH-18 Economic Growth Making more use of existing resources 34 Annika Parag Deshmukh An increase in aggregate demand resulting in higher output Increase in productive capacity shown on a ppc diagram 35 Annika Parag Deshmukh Increase in productive capacity shown on an AD/AS diagram 36 Annika Parag Deshmukh Economic growth resulting from a combination of higher aggregate demand and aggregate supply CH-19 Unemployment Cyclical unemployment CH-20 Price stability \ 37 Annika Parag Deshmukh Cost-push inflation Demand pull inflation Good Deflation 38 Annika Parag Deshmukh Bad deflation CH-22 Fiscal policy The difference between a cyclical and a structural budget 39 Annika Parag Deshmukh Types of government spending The automatic stabilisation processes The automatic effect of expansionary fiscal policy 40 Annika Parag Deshmukh CH-23 Monetary policy The effect of expansionary monetary policy The effect of expansionary monetary policy CH-24 Supply-side policy 41 Annika Parag Deshmukh Non-inflationary economic growth CH-25 The reasons for international trade Two countries with absolute advantage 42 Annika Parag Deshmukh CH-26 Protectionism Examples of tools of protection used by governments to restrict free trade 43 Annika Parag Deshmukh The effect of imposing a tariff CH-28 Exchange rates The effect of an increase in supply on currency 44 Annika Parag Deshmukh The effect on the value of the dollar of Americans buying fewer UK products The effect of a rise in net exports 45 Annika Parag Deshmukh The effect of a rise in the exchange rate reducing the growth of aggregate demand 46
