New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Week 8 Notes ECON 142

by: Noah Johnston

Week 8 Notes ECON 142 Econ 142

Marketplace > Kansas > Economics > Econ 142 > Week 8 Notes ECON 142
Noah Johnston

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes cover lecture on thursday and the discussion!
Dr. Brian Staihr
Class Notes
Termsoftrade, Microeconomic, 142
25 ?




Popular in Microeconomics

Popular in Economics

This 2 page Class Notes was uploaded by Noah Johnston on Friday October 14, 2016. The Class Notes belongs to Econ 142 at Kansas taught by Dr. Brian Staihr in Fall 2016. Since its upload, it has received 17 views. For similar materials see Microeconomics in Economics at Kansas.


Reviews for Week 8 Notes ECON 142


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/14/16
ECON 142 Week 8 Notes Absolute Advantage - I need to know it! Autarky - country doesn’t trade, it just works on its own To determine terms of trade: Find a common denominator, and then find something that falls between the two opportunity costs. the answer is either that fraction or the reciprocal of the fraction. calculate the opportunity cost of making 1 of each good in each country. Take some ratio in between. The “Losers” from Free Trade Tariff: tax on an import two kinds: 1. Specific tariff: dollar amount, a specific number identified 2. Ad valorem tariff: a percentage of the value, like a 20% tax A tax on imports will not only raise the price of imports, it will raise the price of the domestic thing that is being produced. Smoot-Hawley – In the 1930s, Smoot-Hawley Act imposed tariffs on older, labor- intensive industries. (Clothing, textiles, shoes). Industry lobbying campaigns have kept many of these in place for decades Modeling a Tariff: However much the international price is, shift the tariff up that same amount. This means the amount being imported goes down. Under the tariff: 1. Quantity of imports is reduced 2. Price the customer is paying is higher than it was under free trade 3. price the domestic guys are receiving is higher because their prices can go up too 4. The quantity supplied domestically increases Absolute Advantage: Trees Tables Madagascar 800 100 U.S. 400 500 Whoever can produce more of something is absolute advantage! For example, U.S. has absolute advantage when making tables while Madagascar has absolute advantage when growing trees. Inherent Comparative Advantage: Comparative advantage based on factors that are relatively unchanging. Transferrable C.A.: Based on factors that can be changed relatively easily. (Workers’ skills, technology).


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.