By the end of this section, you will be able to:
Differentiate between infinite and zero elasticity
Analyze graphs in order to classify elasticity as constant unitary, infinite, or zero
By the end of this section, you will be able to:
Calculate the price elasticity of demand
Calculate the price elasticity of supply
By the end of this section, you will be able to:
Explain supply and demand for exchange rates
Define arbitrage
Explain purchasing power parity's importance when comparing countries.
By the end of this section, you will be able to:
Differentiate among a floating exchange rate, a soft peg, a hard peg, and a merged currency
Identify the tradeoffs that come with a floating exchange rate, a soft peg, a hard peg, and a merged currency
By the end of this section, you will be able to:
Define "foreign exchange market"
Describe different types of investments like foreign direct investments (FDI), portfolio investments, and hedging
Explain how appreciating or depreciating currency affects exchange rates
Identify who benefits from a stronger currency and benefits from a weaker currency
By the end of this section you will be able to:
Explain how exchange rate shifting influences aggregate demand and supply
Explain how shifting exchange rates also can influence loans and banks
By the end of this section, you will be able to:
Explain and analyze various arguments that are in support of restricting imports, including the infant industry argument, the anti-dumping argument, the environmental protection argument, the unsafe consumer products argument, and the national interest argument
Explain dumping and race to the bottom
Evaluate the significance of countries’ perceptions on the benefits of growing trade
By the end of this section, you will be able to:
Explain the origin and role of the World Trade Organization (WTO) and General Agreement on Tariffs and Trade (GATT)
Discuss the significance and provide examples of regional trading agreements
Analyze trade policy at the national level
Evaluate long-term trends in barriers to trade
By the end of this section, you will be able to:
Discuss how international trade influences the job market
Analyze the opportunity cost of protectionism
Explain how international trade impacts wages, labor standards, and working conditions
By the end of this section, you will be able to:
Explain protectionism and its three main forms
Analyze protectionism through concepts of demand and supply, noting its effects on equilibrium
Calculate the effects of trade barriers
By the end of this section, you will be able to:
Asses the complexity of international trade
Discuss why a market-oriented economy is so affected by international trade
Explain disruptive market change
By the end of this section, you will be able to:
Describe how the federal government can use discretionary fiscal policy to stabilize the economy
Identify examples of automatic stabilizers
Understand how a government can use standardized employment budget to identify automatic stabilizers
By the end of this section, you will be able to:
Explain the U.S. federal budget in terms of annual debt and accumulated debt
Understand how economic growth or decline can influence a budget surplus or budget deficit
By the end of this section, you will be able to:
Identify U.S. budget deficit and surplus trends over the past five decades
Explain the differences between the U.S. federal budget, and state and local budgets
