review%20sheet%203%202014%20sp08

review%20sheet%203%202014%20sp08 - REVIEW SHEET EXAM 3 AEB...

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REVIEW SHEET EXAM 3 AEB 2014 GOLDEN RULE OF AEB 2014 : If material (or a concept) is covered in class, you are responsible for it UNLESS specifically stated that you are not. Chapter 9: International Trade (pp. 181 -195) - Use Consumer Surplus and Producer Surplus to illustrate the effects and gains from trade o Who wins and who loses from trade In the exporting country: producers win and consumers lose In the importing country: producers lose and consumers win - Trade policy o Protection of domestic firms from competition from imports o Tariffs (graphs and concept) How they work and Welfare effects (i.e. surplus analysis) Tariffs always reduce over-all welfare, but they do protect domestic jobs Questions for Review : (p. 196) # 3, 4 Problems and Applications: (p. 196) # 3 Chapter 10: Externalities - Externalities: the impact the consumption or the production of a good has on bystanders (or society at large) o Negative Externalities: Negative impact on bystanders o Positive Externalities: Positive impact on bystanders
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review%20sheet%203%202014%20sp08 - REVIEW SHEET EXAM 3 AEB...

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