1. Building Wealth through Expanded Trade “From Trash to Treasure: A Voluntary Trading Game” List the Individual Values across Classroom Citizens Total Wealth in the Classroom Society Change in Wealth [0: no value, 1: a little value, … 10: highest value possible] Round 1: Classroom wealth without trade ---- Round 2: Classroom wealth under restricted trade Round 3: Classroom wealth under free trade LESSON 23 – MORALITY IN MARKETS: THE TWO FACES OF ADAM SMITH FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

2. Why Free Trade Benefits Everyone 1.Trade is voluntary. It does not take place unless everyone involved agrees. 2.Many types of markets for goods, services, and resources exist. Millions of people come together freely to exchange goods, services, and resources. They use prices and information to guide their decisions. LESSON 23 – MORALITY IN MARKETS: THE TWO FACES OF ADAM SMITH FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

3. Why Free Trade Benefits Everyone 3.Consumers benefit from getting goods and services that they value. a.They value purchased goods more than the money they pay for the goods. b.If the price of something is too high, they simply do not buy it. They choose something else or save the money. c.Prices provide valuable information for consumers. LESSON 23 – MORALITY IN MARKETS: THE TWO FACES OF ADAM SMITH FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

4. Why Free Trade Benefits Everyone 4.Producers benefit from the revenues the sale of consumed items generate. a.They either succeed or fail in producing what consumers want. b.They must use the revenues from sales to cover the costs of producing goods and providing services. c.If they do not benefit from a trade, they do not have to sell the product. d.Prices provide valuable information to them. LESSON 23 – MORALITY IN MARKETS: THE TWO FACES OF ADAM SMITH FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

5. Why Free Trade Benefits Everyone 5.When consumers and producers agree on a price and then trade, both benefit from the exchange. a.Consumers get something valued more than the money used to buy the goods and services. b.Producers receive the revenues from their sales. These revenues are then used to cover the costs of production. What is left is used to reward producers for accepting the risks of doing business in rapidly changing markets. LESSON 23 – MORALITY IN MARKETS: THE TWO FACES OF ADAM SMITH FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY