Econ exam help

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#1 1 May, 2015 - 06:13
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Joined: 2 years 10 months ago

Econ exam help


Hi!
I have my econ exam coming up in a few days, and I was wondering if anyone could help me memorise this?
Thanks!

Free trade benefits:
Lower prices for consumers
Greater choice for consumers
The ability of producers to benefit from economies of scale
The ability to acquire needed resources
A more efficient allocation of resources
Increased competition
Enables technology and ideas to spread faster

Principle of comparative advantage (assumptions):
Constant costs of productions
Perfect factor mobility within each country
No transport costs
Perfect competition in all markets
Free trade

Principle of comparative advantage (limitations):
Increasing returns to scale, so EOS (economies of scale) exist
Labour suffers from occupational and geographical immobility so it may be costly to specialise
Transportation costs exist, limiting the scope for trade
Perfectly competitive conditions are rarely approximated
Trade barriers exist, limiting the scope for trade

World trade organisation

Facts:
Set up in 1995 as a successor of the GATT (1948)
Has 153 member countries
Promotes trade liberalisation
Sets trade rules and ensures that they are followed
Is the arbitrator of trade-related disputes

Criticisms:
Biased in favour of US and European Union interests
Inconsiderate to the needs of developing countries
Paying insufficient attention too increasingly important issues such as child labour, health, the environment and workers’ rights

Trade protection

Economic arguments in favour:
Will protect jobs from foreign competition
Can correct a trade deficit
Will protect against possible dumping
It can enhance government revenues

Other arguments in favour:
‘Infant industry’ argument
Strategic trade policy argument

Arguments against trade protection:
Breeds inefficiency
Limits competition and increases monopoly power
Is responsible for misallocation of scarce resources
Leads to higher prices for consumers
Increases the production costs of firms importing intermediate goods
Increases the possibility of retaliation
Responsible for DUPs (directly unproductive profit-seeking activities)
Limits options to consumers and firms

Tariffs:
A tax imposed on imports aimed at restricting their flow into the country and at protecting domestic producers.

Quotas:
A quantitative restriction on the volume of imports.

Subsidies:
Lower production costs of firms, artificially increasing competitiveness.

Summary of effects:
Do not affect the domestic price of the protected good
Do not affect the consumption of the good
Increase the domestic production of the good
Do not affect consumer welfare
Make domestic producers better-off
Lead to wasteful domestic production and resource misallocation
Lead to increased government spending burdening taxpayers
Can create trade frictions, leading to trade wars

19 March, 2016 - 17:38
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Joined: 1 year 2 months ago

Really, no one helped you? Sometimes this community shocks me :O Also, I assume you don't need anymore help, right? lol

19 March, 2016 - 18:55
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Joined: 1 year 9 months ago

There can be many reasona why people don't reply.

Maybe he was already helped over private message and the others didnt want to post it twice. Maybe no one was around at the time and only noticed this message late. Or maybe the people who read it simply couldnt figure out a good answer.

I have been away for a while too now, missed many messages. A lot I could have maybe responded on, but I may never get to read them as my time on a day is limited too.

20 March, 2016 - 00:47
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Joined: 5 years 2 weeks ago

This community shocks you? I think this is one of the most helpful communities I ever saw.

I personally have helped a lot of people with homework assignments, upcomming exams, etc.
Some questions I stopped reponding to.

Things like:
'I have an upcomming exam in 2 days and I need to learn this 400 page book verbatim.'
Answer: you should have started a lot earlier.

This could be one of them. All techniques for memorizing are explained in the beginners section. Specialized techniques for memorizing numbers are explained too.

I rather see posts like 'I studied the beginners guide and have a question about the Major system' or 'I have trained myself the basics and now I get stuck on this specific item' or 'I have searched the forum for an answer to this secific question, but seem to be unable to find an answer'.

A question like 'I have these 1000 items I need to know for my exam in a couple of days' will probably get no response from me.
Reason; there is no room for errors anymore. There is no time for first learning the basics, getting proficient with them and then do the work for the exam.

20 March, 2016 - 09:22
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Joined: 1 year 11 months ago

Quote:

Sometimes this community shocks me

Sorry that no one got to that post. I will try to figure out how to improve that.

Maybe I will add a note to let people know that it would help if they write out what exactly what they've already tried, and what didn't work, so that we know that they already read the information we have for beginners (like Kinma mentioned).

You said "sometimes" -- are there other areas of the site that you think need improvement? I'm always interested in constructive feedback. You can send me a private message through my user profile any time. :)

21 March, 2016 - 05:24
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Joined: 4 years 4 months ago

I think Josh is right: People should include a description of their attempts thus far. If a Memory Palace is involved, post a drawing of it so the people interacting with you have a sense of what you're working with on a visual level.

21 March, 2016 - 13:26
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Joined: 1 year 2 months ago

Just to point out one thing; I said "sometimes". :) I love this community most of the time but I do see a he'll of a lot of posts that aren't even looked at.

21 March, 2016 - 13:28
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Joined: 1 year 2 months ago

The only flaw with this site is that some people don't even click on certain posts that are looking for help. I think we should all try our best to answer other people's questions and worries!:D

21 March, 2016 - 14:43
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Joined: 1 year 9 months ago

Not sure about others, but I tend not to read everything for a simple reason. I don't have the time to.

I have a job, a daughter, a new-born son, friends, sports, you name it. I don't have time to read it all, so I read the things I think I can help with. Economy is a subject I have not tried yet with mnemonics, so it would automatically go down on my priority list. Also, I read a lot of things while not logged in and I do not know if the forum records all those views as well.

I also can tell you without a doubt that we all try our best to answer and help people :) the thing is, we are not always able to. Mnemonics is young and many things are still being thought of as we speak, there isca lot no one knows yet, we also don't have unlimited spare time (unfortunately).

21 March, 2016 - 20:34
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Joined: 1 year 11 months ago

Quote:

people don't even click on certain posts that are looking for help

I read almost everything, but the volume of posts is so high that I can't always reply. (There are over 30,000 posts now.) I will keep thinking of ways to improve the situation though. :)

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