By the end of this section, you will be able to:
Explain economic convergence
Analyze various arguments for and against economic convergence
Evaluate the speed of economic convergence between high-income countries and the rest of the world
By the end of this section, you will be able to:
Identify the role of labor productivity in promoting economic growth
Analyze the sources of economic growth using the aggregate production function
Measure an economy’s rate of productivity growth
Evaluate the power of sustained growth
By the end of this section, you will be able to:
Explain the conditions that have allowed for modern economic growth in the last two centuries
Analyze the influence of public policies on an economy's long-run economic growth
By the end of this section, you will be able to:
Analyze how price elasticities impact revenue
Evaluate how elasticity can cause shifts in demand and supply
Predict how the long-run and short-run impacts of elasticity affect equilibrium
Explain how the elasticity of demand and supply determine the incidence of a tax on buyers and sellers
By the end of this section, you will be able to:
Calculate the income elasticity of demand and the cross-price elasticity of demand
Calculate the elasticity in labor and financial capital markets through an understanding of the elasticity of labor supply and the elasticity of savings
Apply concepts of price elasticity to real-world situations
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
