1. Economics Learning Steps 2/24/15

2. Complete SSEMA3 Fiscal Policy Post Quiz & SSEIN1-3 Pre. Quiz

3. Standards & Elements SSEIN1 The student will explain why individuals, businesses, and governments trade goods and services. Elements: a. Define and distinguish between absolute advantage and comparative advantage. b. Explain that most trade takes place because of comparative advantage in the production of a good or service. c. Explain the difference between balance of trade and balance of payments. SSEIN2 The student will explain why countries sometimes erect trade barriers and sometimes advocate free trade. Elements: a. Define trade barriers as tariffs, quotas, embargoes, standards, and subsidies. b. Identify costs and benefits of trade barriers over time. c. List specific examples of trade barriers. d. List specific examples of trading blocks such as the EU, NAFTA, and ASEAN. e. Evaluate arguments for and against free trade SSEIN3 The student will explain how changes in exchange rates can have an impact on the purchasing power of individuals in the United States and in other countries. Elements: a. Define exchange rate as the price of one nation’s currency in terms of another nation’s currency. b. Locate information on exchange rates. c. Interpret exchange rate tables. d. Explain why, when exchange rates change, some groups benefit and others lose.

4. Enduring Understandings The student will understand that voluntary exchange occurs only when all participating parties expect to gain and that this is true for trade among individuals or organizations within a nation, and among individuals or organizations in different nations.

5. Essential Questions PP17 1. How does resource distribution affect trade? 2.What are the differences between absolute and comparative advantage? 3. What are trade barriers? 4. What are the effects of trade barriers? 5. What organizations promote international cooperation on matters of trade? 6. How do exchange rates affect international markets? 7. How do exchange rate systems vary?

6. Individual Study Free Trade vs. Trade Barriers USA Test Prep. Activity Ticket-Out-The Door Class Activities