ECO 201 Study Guide - Final Guide: Economic Equilibrium, Takers, Nash Equilibrium
Document Summary
Chapter 9: comparative advantage and the gains from international trade (part ii) 2. Chapter 11: technology, production, and costs 4. Chapter 12: firms in perfectly competitive markets 12. Chapter 14: oligopoly: firms in less competitive markets 25. Chapter 9: comparative advantage and the gains from international. Overall, trade increases total surplus in the us. The total accounts for 2-8% of the gdp. O(cid:373)eti(cid:373)es, go(cid:448)e(cid:396)(cid:374)(cid:373)e(cid:374)t de(cid:272)ides to (cid:396)est(cid:396)i(cid:272)t t(cid:396)ade to (cid:862)p(cid:396)ote(cid:272)t(cid:863) u(cid:374)ited tates jo(cid:271)s (cid:894)a(cid:373)o(cid:374)g othe(cid:396) reasons). There are two types of trade restrictions; tariff restrictions and quotas restrictions. Tariff: shifts (cid:1845)(cid:1371) by the amount of the tariff. The amount of the tariff (cid:1843)(cid:3031)(cid:3022)(cid:3020)(cid:1373) and (cid:1843)(cid:3046)(cid:3022)(cid:3020)(cid:1371), then number of imports (cid:1373) (cid:1829)(cid:1845) (cid:1842)(cid:1845) (cid:1830)(cid:1849)(cid:1838) J: lost cs because consumers buy fewer units. W: lost cs because higher cost versus produces now make units. Legal limit on the number of units allowed to be imported.
