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Unformatted text preview: decreases Market and Prices • Economic discrimination and resource allocation o Price discrimination o Age o Gender o Race o Time o Geographic • Planners' Preferences Price Ceilings: Rent Control • Price Ceiling: a maximum price that sellers may charge for a good, usually set by government • Price ceilings below the equilibrium are a shortage and price ceilings above the equilibrium are a surplus Trade of Comparative Advantage and Absolute Advantage • Absolute Advantage: the advantage in the production of a product enjoyed by one country over another when it uses fewer resources to produce that produc than the other country does • Comparative Advantage: the advantage in the production of a product enjoyed by one country over another when that product can be produced at lower cost in terms of other goods than it could be in the other country...
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This note was uploaded on 02/21/2008 for the course ECON 4.3 taught by Professor Fox during the Spring '99 term at Penn State.
- Spring '99