Macro Learning Objectives for questions over Exam 1 Form A

 

PCM

 ECON 2301 MACROECONOMICS   

Chapter 33

Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. Each number in the following list refers to the question number on Exam 4 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below. A much better understanding can often be attained by working through MyEconLab assignments connected to any of these objectives.

 

    After reading Chapter 33, you should be able to:

    Worldwide Importance of International Trade

  1. Define comparative advantage. How important is international trade in the U.S.? in other countries?

    Comparative Advantage and Mutual Gains from Exchange
  2. Given production figures for two goods from two countries, be able to calculate opportunity cost and recognize a mutually beneficial exchange rate.
  3. Be able to determine comparative advantage and the direction of trade.
  4. Understand how comparative advantage leads to specialization and what the gains from trade are.

    Relationship Between Imports and Exports
    International Competitiveness
  5. How do we really pay for imports? Is the U.S. losing competitiveness in world trade?

    Arguments Against Free Trade
  6. Explain the reasoning behind the infant industry and foreign subsidies arguments for protectionism, as well as the weaknesses of these arguments.
  7. 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
  8. Define: quota, VRAs, VIEs and understand how they change international trade and domestic markets.
  9. How do tariffs and quotas compare? Who specifically gains or loses from them?

    International Trade Organizations
  10. 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?