PCM

 ECON 2302 MICROECONOMICS   

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.

Chapter 26

 

  After reading this chapter, you should be able to:

  1. List and explain the characteristics of oligopoly.
  2. Explain why oligopolies exist.
  3. Discuss Measurements of Industry Concentration.
  4. Eplain 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. Apply Game Theory analysis to the strategic behavior of firms (and countries) participating in cartels.
  8. Illustrate how Network Effects and Market Feedback can explain why some industries are oligopolies.
  9. Explain why multiproduct firms selling complementary sets of products may or may not want their product to be compatable with the products of their competitors.
  10. Identify and expain the major characteristics of the four types of market structure discussed by economists.

Chapter 28

 

  After reading this chapter, you should be able to:

  1. Understand Marginal Revenue Product and labor demand
  2. Explain Derived Demand
  3. Define and calculate demand elasticity for labor
  4. Understand Labor Market Equilibrium
  5. Discuss shifts in market demand for labor
  6. Discuss Labor outsourcing benefits
  7. Discuss the net effects of labor outsourcing
  8. Discuss the benefits of labor outsourcing
  9. Discuss a monopoly in the product market
  10. Discuss the utilization of other factors of production

Chapter 32

 

    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?

Chapter 33

 

    After reading Chapter 33, you should be able to:

    Balance of Payments and International Monetary Fund

  1. Know the difference between the balance of trade and the Balance of Payments. Define accounting identity and recognize surplus and deficit items.
  2. What kinds of transactions are contained in the Current and Capital accounts?
  3. What are Official Reserves? What impact will differing inflation rates have on trade? What is capital flight? 

    Determining Foreign Exchange Rates
  4. Know how a foreign exchange market functions and what is meant by the exchange rate, appreciation and depreciation.
  5. Be able to do exchange rate math, converting one currency into another or determining what the exchange rate is.
  6. What are the determinants of supply and demand and their slopes in foreign exchange markets? What causes the curves to shift?
  7. Put it all together and work with changes in equilibrium in the foreign exchange markets.
    Gold Standard and the International Monetary Fund
  8. Be familiar with the two historical fixed exchange rate systems, the gold standard and the Bretton Woods Monetary System and IMF, and how the fixed rates were maintained.

    Fixed Versus Floating Exchange Rates
  9. What are a hedge and foreign exchange risk? What must a country do to fix its exchange rate? Know the reasons why countries desire fixed rates and how fixed rates can be harmful.
  10. Know how and why countries use the dirty float, crawling peg and target zones to keep their exchange rates stable. How effective are the policies?