"The FAG bus is late again!"
Clint: "Hey
Tommy, do you want to play marbles with me after school"
Tommy:"No"
Clint:"Why not?"
Tommy: "Cause marbles are FAG"
Or in relation to someone:
Tina: "You're FAG"
Becky: "Um, I believe you're FAG"
(note the absence of "a" in the last quote, which would be a completely different word and meaning)