About This Chapter
Below is a sample breakdown of the Comparative Advantage and Specialization chapter into a 3-day school week. Based on the pace of your course, you may need to adapt the lesson plan to fit your needs.
|Day||Topics||Key Terms and Concepts Covered|
|Day 1||Comparative advantage||Definition of comparative advantage, with examples|
|Day 2||Gains from trade and benefit of specialization||Explanation of the concepts of gains from trade and benefits of specialization|
|Day 3||Absolute advantage in trade||Definition of absolute advantage, with examples|
1. Comparative Advantage: Definition and Examples
Understand the definition of comparative advantage, using two goods as an example. This key lesson incorporates the basic foundations of economics into one foundational theory explaining what goods and services that people,and nations, should produce and for whom they should produce it.
2. Gains From Trade and the Benefit of Specialization
Explore one of the most widely accepted ideas in economics - the idea that nations benefit from specialization and exchange, reaping gains from trade.
3. Absolute Advantage in Trade: Definition and Examples
In this lesson, you'll learn what absolute advantage is and how to easily identify it within examples of international trade. In addition, you'll learn the important difference between absolute advantage and comparative advantage.
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