Externalities

TOPIC:            Externalities

DATE:            TO BE ANNOUNCED

TEXT REFERENCES:    Mankiw, Chapter 10.

1.    External benefits

    A.    Definition

    B.    Why laissez faire market provides "too little" of the good

2.    External costs

    A.    Definition

    B.    Why laissez faire market provides "too much" of the good

3.    Internalizing externalities

Imperfect Competition: Monopolistic Competition

TOPIC:            Imperfect Competition: Monopolistic Competition

TEXT REFERENCES:    Mankiw, Chapter 16

DATE:            TO BE ANNOUNCED

1.     General characteristics of monopolistic competition

        A.     Easy entry into industry and its similarity to perfect competition

        B.     Product differentiation and its similarity to monopoly

2.     Short run and long run behavior and "sick" industries

International Trade

TOPIC:             International Trade

DATE:             TO BE ANNOUNCED

TEXT REFERENCES:     Mankiw, Chapter 3

1.     Absolute advantage

2.     Comparative advantage and how countries benefit from free trade