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					                                        Draw a diagram:

1. To compare a perfectly competitive industry with a monopoly also showing the possibility of the
    monopoly structure charging less than perfectly competitive firms.
2. To show a perfectly competitive firm making losses
3. To show price stability in non-collusive oligopoly
4. To show the law of diminishing marginal returns
5. To show the effects of a quota
6. To show the operation of a fixed exchange rate system
7. To illustrate the Lewis labor surplus model
8. To show the effect on income distribution of mass education
9. To show equilibrium / natural / structural unemployment
10. To show cyclical (and, disequilibrium) unemployment
11. To show an income elastic demand curve (actually, an ‘Engel’ curve) with Y on the vertical and Qd
    on the horizontal
12. To show road pricing as a solution to traffic congestion
13. To show a deflationary and an inflationary gap (using the AD/AS model)
14. To show economic recovery
15. To show the welfare loss resulting from an indirect tax
16. To show the tax incidence on consumers of an ad valorem tax
17. To show the necessary government spending from a minimum price policy
18. To show why a market with fewer substitutes available to consumers will get charged more if pd is
19. To show why Burkina Faso should still export cotton to the US even though the US is a much larger
20. To show the case where only a single firm could profitably exist in a market
21. To show why a perfectly contestable monopoly structure could be as efficient as a competitive
22. To show the benefit enjoyed by the consumer and by the producer as well as the total cost to the
    government of a subsidy; explain what determines which party benefits more
23. To show why the consumers are burdened more from an indirect tax when demand is relatively
    price inelastic; what are the tax revenues equal to on the diagram
24. To show why an indirect tax could correct the market failure resulting from a polluting ‘steel’ firm
25. To show how a tax could correct the inefficiency resulting if Vodka output and consumption was
    determined only by market forces
26. To show how a subsidy could improve resource allocation in the market for flu vaccinations
27. To show how expansionary demand side policies may prove inflationary and explain using the same
    diagram why a trade deficit could widen
28. To show how tight monetary policy may lower inflationary pressures
29. To show the high output/employment cost of raising interest rates (i.e. of employing tight monetary
    policy) to curb cost push inflation
30. To show the short term opportunity costs in terms of increased unemployment associated with
    disinflation (equivalently, of a tight monetary policy aiming at lowering inflation)
31. To show the effect on the Norwegian currency (the Krone) of a significant current account surplus
32. To show how higher inflation in Mexico will affect the peso (the Mexican currency)
33. To show what a central bank must do to maintain a currency’s value at a fixed level in the face of
    inflationary pressures.
34. To show the effects of eliminating a tariff on steel
35. To show the rents exporters will enjoy by a voluntary export restraint

                                    Draw a diagram revision q’s