Section 1: Be able to match each of these terms with its definition for the exam.
Coordination problem
Comparative advantage
Absolute advantage
Opportunity cost
Specialization and trade
Trade barriers
Asymmetric information
Signaling
Screening
Principal-agent problem
Adverse selection
Lemons problem
Diversionary war
Gambling for resurrection
Democratic accountability
Public goods
Common pool goods
Tragedy of the commons
Free-rider problem
Excludable good
Rival good
Collective action problems
Monitoring institutions
Hegemonic stability theory
Issue linkage
Section 2: In Section 2 you will have to solve comparative advantage problems.
Section 3: In Section 3 you will respond to prompts related to coordination problems from the list below. You will be allowed to use your notebooks and hard copies of your research outlines for this part of the test. The prompts will be based on the questions we discussed in class and in the videos. You will be expected to use the vocabulary from Section 1 in these responses. Also, you will be allowed to bring in 6 notecards and use them to help you write the response. You will only be allowed to use the notecards for this section of the test.
International trade
Principal-agent problems
The tragedy of the commons
Public goods