Problem Set 1 Answers Econ 3104 Problem Set 1 Answers Econ 3104 1. International Trade and International Finance (or, International Macroeconomics): Thought the two are closely related, the focus and typical models/assumptions differ between the two. International trade is concerned with why, what, and how much countries trade as well as the benefits and losses.
Microeconomics Microeconomics:Chapter 1:Economics revolves around the scarcity principle; wants are unlimited but resources are not.Economic decisions are concerned with maximising consumer surplus. They involve opportunity costs (trade-offs)In determining the trade-offs, one must take into account the cost-benefit principle; only undertake an action if the marginal benefit equals or exceeds the marginal costEconomic surplus: difference between.
