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Clock
30 minutes
Middle School - High School
13 classes this week
Subjects: Economics AP Economics
Topics: Scarcity Specialization

In this module, students learn that even when absolute advantage exists, two parties can still benefit from trading, if they do so according to their comparative advantage.
    
Miss Information tries to persuade Andy that his new car repair and snow removal business is doomed to failure because Jack has the absolute advantage in both tasks. However, Jack dispels Miss Information’s misinformation by suggesting they work together and exploit their comparative advantage.

View Voluntary National Content Standards in Economics

Content Standard 1: Scarcity

Grade 4 Benchmark

5. The opportunity cost of a activity is the value of the best alternatives that would have been chosen instead. It includes what would have been done with the money spent and the time and other resources used in undertaking the activity.

Grade 12 Benchmark

1. Choices made by individuals, firms, or government officials often have long run unintended consequences that can partially or entirely offset or supplement the initial effects of the decision.

Standard 6: Specialization

Grade 4 Benchmark

1. Economic specialization occurs when people concentrate their production on fewer varieties of goods and services than they consume.

Grade 12 Benchmark

1. Individuals and nations have a comparative advantage in the production of goods or services if they can produce a product at a lower opportunity cost than other individuals or nations.


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