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Microeconomics Exam 2 Study Guide: Key Concepts and Applications

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Price Ceilings, Price Floors, and Black Markets

Quantitative Analysis of Price Ceilings and Price Floors: Finding Points

Quantitative Analysis of Price Ceilings and Price Floors: Finding Areas

Introducing Taxes and Tax Incidence

Effects of Taxes on a Market

Externalities: Social Benefits and Social Costs

Public Solutions to Externalities

Private Solutions to Externalities: The Coase Theorem

Four Types of Goods and Two Characteristics

The Free Rider Problem and the Tragedy of the Commons

Public Goods: Demand Curve and Optimal Quantity

Four Types of Goods and Two Characteristics

Exporting and Importing

Sources of Comparative Advantage

Tariffs on Imports

Import Quotas and VERs

Arguments Against International Trade

Subsidies