Econ Recitation Notes 03

Econ Recitation Notes 03 - ☼ Outperformed by...

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Third Recitation 2.20 Notes: If the world price is below / above the equilibrium price of supply + demand curves,  producers will import / export the difference in quantities                               A = price buyers going to face  Imports = difference in Qs             World Price       D Q         Q Reasons Not to Trade: Job loss: unions politically protesting (barriers to trade) Infant industry:
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Unformatted text preview: ☼ Outperformed by multi-national corporations: not yet a strong / developed industry ♫ National security ♫ TFP (Technical Factors of Production) coefficient (no units) → Tariffs: ♫ If the government imposes a tariff on suppliers, the supply curve shifts left S T S Government revenue = B → Net effect negative by A (distortion) → D A S A B...
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Econ Recitation Notes 03 - ☼ Outperformed by...

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