• Examine the effects of taxes on market outcomes.
• Analyze the relationship between deadweight loss and size of the tax.

• Determine whether a country will be an importer or exporter of a good if the country opens up to international

trade.

• Compare the effect of a quota versus a tariff on an open economy.
• Identify which argument for restricting trade is being applied, given a proposed trade restriction.
• Describe the income approach to calculating GDP.
• Describe the expenditure approach to calculating GDP.
• Compare GDP and GNP for an economy.
• Explain the difference between real GDP versus nominal GDP.
• Identify limitations of using GDP as a measure of quality of living in a given scenario.