Macroeconomics Canadian 1st Edition Karlan Solutions Manual
Macroeconomics Canadian 1st Edition Karlan Solutions Manual
Macroeconomics Canadian 1st Edition Karlan Solutions Manual
https://testbankfan.com/download/macroeconomics-canadian-1st-edition-karlan-soluti
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Macroeconomics 1CE
Karlan/Morduch/Alam/Wong
Instructor’s Manual
CHAPTER 2
SPECIALIZATION AND EXCHANGE
Chapter Overview
Specialization and trade can make everyone better off. It is not surprising, then, that in an
economy driven by individuals seeking to make a profit or to make the biggest difference in
their communities, people specialize so as to exploit their comparative advantages. The
principle is as true for countries, like Canada and China, as it is for individuals picking their
careers. No government intervention is required to coordinate production. The great economic
thinker Adam Smith suggested the term invisible hand to describe this coordinating mechanism:
It is not from the benevolence of the butcher, the brewer, or the baker that we
expect our dinner, but from their regard to their [self-interest]. . . . he intends only
his own gain, and he is in this, as in many other cases, led by an invisible hand to
promote an end which was no part of his intention. (A. Smith, An Inquiry into the
Nature and Causes of the Wealth of Nations, 1776.)
The functioning of the invisible hand depends on a lot of other assumptions, such as free
competition, full information, and many others that do not always hold true in the real world.
Later in the book we will discuss these assumptions, and when they work and when they do
not.
Most people take for granted the prevalence of specialization and trade in their everyday lives.
Few stop to think about the benefits and where they come from. In this chapter we tried to dig
down to the bottom of the assumptions people make and expose the logic behind the gains
from trade. As we proceed—especially when we return to topics like international trade and
government intervention in the markets—students must remember the underlying incentive
that drives people to interact with one another in economic exchanges.
Learning Objectives
LO 2.1: Construct a production possibilities graph and describe what causes shifts in production
possibilities curves.
LO 2.2: Define absolute and comparative advantage.
LO 2.3: Define specialization and explain why people specialize.
LO 2.4: Explain how the gains from trade follow from comparative advantage.
Chapter Outline
1. Ask each student to rate their satisfaction with the snack you’ve given them on a scale
from 1-10, with 1 being highly dissatisfied and ten being highly satisfied. Record their
answers somewhere where all students can see.
2. Ask the students if they want to trade, and give them a few minutes to interact and
exchange snacks. (Remind them that it must be voluntary—they do not have to trade if
they do not wish to.)
3. Ask the students about their satisfaction again, this time with their new snack. Have the
students explain any changes in their answer from before.
After trading, students should be at the very least equally as well off in terms of satisfaction as
the first time they answered. This exercise can be used to highlight the gains from trade. You
can also discuss the fact that the original distribution matters as well. This can tie into a number
of discussions, including income distribution and comparative advantage.
Review Questions
1. You’ve been put in charge of a bake sale for a local charity, at which you are planning to sell
cookies and cupcakes. What would a production possibilities graph of this situation show?
[LO 2.1]
Answer: On one axis, the production possibilities graph would show the total number of
cookies you could bake if you spent all of your time and resources baking cookies. The other
axis would show the total amount of cupcakes you could bake if you spent all of your time
and resources baking cupcakes. The two endpoints would be connected by a downward-
sloping line. The slope of this line would represent the tradeoff (opportunity cost) you face
between baking cookies and baking cupcakes. If you bake more cupcakes, you must bake
Karlan 1CE Instructor’s Manual: Chapter 2
Copyright © 2017 McGraw-Hill Education. All rights reserved.
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The Project Gutenberg eBook of American
politics (non-partisan) from the beginning to
date
This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this ebook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.
Language: English
AND
HECTOR T. FENTON, Esq.,
Of the Philadelphia Bar.
PHILADELPHIA:
FIRESIDE PUBLISHING COMPANY.
1892.
Entered according to Act of Congress in the year 1892, by the
FIRESIDE PUBLISHING COMPANY,
in the Office of the Librarian of Congress, at Washington, D. C.
Respectfully Dedicated
TO THE
PROPOSITION
THAT ALL AMERICAN CITIZENS SHOULD TAKE AN INTEREST
IN PUBLIC AFFAIRS.
PREFACE.
THOS. V. COOPER.
TABLE OF CONTENTS
BOOK I.—HISTORY OF THE POLITICAL PARTIES.
PAGE.
Colonial Parties—Whig and Tory 3
Particularists and Strong Government Whigs 5
Federals and Anti-Federals 6
Republicans and Federals 8
Downfall of the Federals 12
Democrats and Federals 17
Jefferson Democrats 19
Hartford Convention 20
Treaty of Ghent 20
Congressional Caucus 21
Protective Tariff 21
Monroe Doctrine 23
Missouri Compromise 24
Tariff—American System 25
Tenure of Office—Eligibility 27
Nullification—Democrats and Federals 29
United States Bank 31
Jackson’s Special Message on the United States Bank 33
Conception of Slavery Question 35
Democrats and Whigs 37
The Hour Rule 39
National Bank Bill—First 41
„ „ „ Second 43
Oregon Treaty of 1846 47
Treaty of Peace with Mexico 49
Clay’s Compromise Resolutions 51
Abolition Party—Rise and Progress of 53
Kansas-Nebraska Bill 55
Ritual of the American Party 57
Kansas Struggle 71
Lincoln and Douglas Debate 73
Charleston Convention—Democratic, 1860 81
Douglas Convention, 1860, Baltimore 86
Breckinridge Convention, 1860, Baltimore 86
Chicago Republican Convention, 1860 86
American Convention, 1860 87
Secession—Preparing for 87
Secession—Virginia Convention, 1861 91
„ Inter-State Commissioners 96
„ Southern Congress, Proceedings of 97
„ Confederate Constitution 97
„ Confederate States 98
Buchanan’s Views 99
Crittenden Compromise 104
Peace Convention 106
Actual Secession 109
„ „ Transferring Arms to the South 109
Fernando Wood’s Secession Message 112
Congress on the Eve of the Rebellion 113
Lincoln’s Views 115
Judge Black’s Views 115
Alexander H. Stephens’ Speech on Secession 116
Lincoln’s First Administration 120
Confederate Military Legislation 128
Guerrillas 129
Twenty-Negro Exemption Law 130
Douglas on the rebellion 130
Political Legislation Incident to the War 130
Thirty-Seventh Congress 131
Compensated Emancipation 135
Lincoln’s Appeal to the Border States 137
Reply of the Border States 138
Border State Slaves 139
Emancipation 141
„ Preliminary Proclamation of 141
„ Proclamation of 143
Loyal Governors, the Address of 144
Fugitive Slave Law, Repeal of 145
Financial Legislation 149
Seward as Secretary of State 149
Internal Taxes 151
Confederate Debt 152
Confederate Taxes 153
West Virginia—Admission of 158
Color in War Politics 159
Thirteenth Amendment—Passage of 167
Louisiana—Admission of Representatives 168
Reconstruction 169
Arkansas—Admission of 170
Reconstruction Measures—Text of 171
Fourteenth Amendment 174
McClellan’s Political Letters 175
Lincoln’s Second Administration 177
Andrew Johnson and his Policy 178
„ „ —Impeachment Trial 179
Grant 191
Enforcement Acts 193
Readmission of Rebellious States 193
Legal Tender Decision 194
Greenback Party 194
Prohibitory Party 196
San Domingo—Annexation of 196
Alabama Claims 197
Force Bill 197
Civil Service—Order of President Hayes 198
Amnesty 199
Liberal Republicans 199
Reform in the Civil Service 200
Credit Mobilier 200
Salary Grab 214
Returning Boards 217
Grangers 218
„ —Illinois Railroad Act of 1873 218
Civil Rights Bill—Supplementary 221
Morton Amendment 222
Whisky Ring 222
Belknap Impeached 223
White League 223
Wheeler Compromise—Text of 226
Election of Hayes and Wheeler 228
Electoral Count 229
Title of President Hayes 233
Cipher Despatches 234
The Hayes Administration 239
Negro Exodus 240
Campaign of 1880 242
Three Per Cent. Funding Bill 244
History of the National Loans 245
Garfield and Arthur—Inauguration of 253
Republican Factions 253
The Caucus 256
Assassination of Garfield 260
Arthur, President 261
Boss Rule 261
Readjusters 263
Mormonism—Suppression of 264
„ Text of the Bill 265
South American Question 269
Star Route Scandal 277
The Coming States 278
Chinese Question 281
„ „ —Speech of Senator Miller on 281
„ „ —Reply of Senator Hoar 285
Merchant Marine 296
Current Politics 298
Political Changes in 1882, 1883, 1884 304–
318
Cleveland’s Administration 321
Contests of 1885, 1886, 1887 321
The Campaigns of 1884, 1886, 1887, 1888 318–
335
The National Conventions of 1888 336
The Presidential Election of 1888 337
President Harrison’s Message on the Chilean Troubles 339
The National Conventions of 1892 347
BOOK II.—POLITICAL PLATFORMS.
Virginia Resolutions, 1798 2003
Virginia Resolutions, 1798—Answers of the State Legislatures 2006
Resolutions of 1798 and 1799 2010
Washington’s Farewell Address 2014
All National Platforms from 1800 to 1892 2021–
2079
Comparison of Platform Planks on Great Questions 2079–
2104