After reading this chapter, you should be able to:

1. List and explain the characteristics of oligopoly.
2. Explain why oligopolies exist.
3. Explain alternative methods of measuring industry concentration.
4. Explain what Game Theory is and define all the basic concepts and terms used in Game Theory.
5. Describe the Prisoners' Dilemma with the use of Game Theory and a Game Theory payoff matrix.
6. Apply game theory to pricing strategies of oligopolistic firms using payoff matricies.
7. Explain, with the aid of graphs,
   1. the temptation of oligopolistic firms to collude with one another in a cartel;
   2. what conditions must exist for a cartel to work effectively; and
   3. why the temptation to cheat on the cartel agreement is ever present.
8. Illustrate how Network Effects and Market Feedback can explain why some industries are oligopolies.
9. Explain the functions and forms of two-sided markets.
10. Identify and explain the major characteristics of the four types of market structure discussed by economists.

  After reading this chapter, you should be able to:

11. Define and calculate the Marginal Product of Labor (also know as the Marginal Physical Product of Labor) and the Marginal Revenue Product of Labor.
12. Define and calculate the Marginal Factor Cost of Labor and state its relatiion to the wage rate under conditions of perfect competition in the labor market.
13. State and explain the General Rule for hiring labor by a firm wanting to maximize profits.
14. Explain what is meant by the term "Derived Demand" and explain the relationship between the Marginal Revenue Product of Labor and the firm's demand curve for labor.
15. Explain the relationship between the price of the product labor produces and the firm's demand for labor and explain why the total market demand for labor is not simply the horizontal summation of each firm's demand for labor.
16. List and explain the determinants of the elasticity of demand for the inputs into the production process.
17. Explain wage determination in a perfectly competitive labor market and what might cause shifts in the Demand and the Supply of Labor.
18. Discuss the effects of outsourcing by both domestic and foreign firms.
19. Explain how the demand for labor and for other inputs by a Monoplist differs from that of a Perfectly Competitive Firm and explain what effect this has on the utlilization of labor and other inputs.
20. Explain the formula/rule for the cost minimization of all inputs used in the production process by a firm and how this formula/rule is related to the rule for profit maximization referred to in the thirteenth Learning Objective above.

After reading Chapter 33, you should be able to:

Worldwide Importance of International Trade

21. Define comparative advantage. How important is international trade in the U.S.? in other countries?
    
    Comparative Advantage and Mutual Gains from Exchange
    
22. Given production figures for two goods from two countries, be able to calculate opportunity cost and recognize a mutually beneficial exchange rate.
23. Be able to determine comparative advantage and the direction of trade.
24. Understand how comparative advantage leads to specialization and what the gains from trade are.
    
    Relationship Between Imports and Exports
    International Competitiveness
    
25. How do we really pay for imports? Is the U.S. losing competitiveness in world trade?
    
    Arguments Against Free Trade
    
26. Explain the reasoning behind the infant industry and foreign subsidies arguments for protectionism, as well as the weaknesses of these arguments.
27. Explain the reasoning behind the dumping, protecting domestic jobs, environment and national security arguments for protectionism, as well as the weaknesses of these arguments.
    
    Ways to Restrict Foreign Trade
    
28. Define: quota, VRAs, VIEs and understand how they change international trade and domestic markets.
29. How do tariffs and quotas compare? Who specifically gains or loses from them?
    
    International Trade Organizations
    
30. Be familiar with the history and activities of GATT, WTO and regional trade agreements. and how have they influenced international trade? What are trade diversion and trade deflection?

After reading Chapter 33, you should be able to:

Balance of Payments and International Monetary Fund

31. Teach someone else the difference between the Balance of Trade and the Balance of Payment while being able to explain the role accounting identities play in them and how surplus and deficit items in these accounts help balance these identies.
32. Explain what kinds of transactions are contained in the Current and Financial accounts?
33. Explain the impact differing inflation rates have on trade and financial flows and how capital flight is related to this topic. 
    
    Determining Foreign Exchange Rates
    
34. Explain to someone how a foreign exchange market functions and what is meant by the exchange rate, appreciation and depreciation.
35. Do exchange rate math, converting one currency into another or determining what the exchange rate is.
36. Write down a list of the determinants of supply and demand and their slopes in foreign exchange markets while explaining what factors will cause the curves to shift.
37. Put it all together and explain how changes in equilibrium in the foreign exchange markets occur.
    
    Gold Standard and the International Monetary Fund
    
38. Carry on a discussion about two historical fixed exchange rate systems: a) the gold standard, and b) the Bretton Woods Monetary System and IMF.
    
    Fixed Versus Floating Exchange Rates
    
39. Explain how a country can maintain a fixed exchange rate if that is its goal.
40. Explain the pros and cons of a fixed exchange rate, and explain how a flexible exchange rate can work as a shock absorber.