This lesson covers the concept of comparative advantage. A 17 slide powerpoint explains comparative advantage and how countries can use trade with one another to end up with more goods than if they did not trade. The powerpoint also explains how comparative advantage is calculated using opportunity cost and how to calculate a good's opportunity cost.
After the powerpoint, students complete a 2 page worksheet to practice.
For Texas teachers, this lesson covers the following TEKS:
E3A: explain the concepts of absolute and comparative advantages
E3B: apply the concept of comparative advantage to explain why and how countries trade