Alabama Social Studies SS24.E.11

SS24.E.11 is a cluster heading. These are the individual standards under it.

• SS24.E.11a

  Contrast absolute advantage to comparative advantage, and explain how they are used to measure gains from trade.

• SS24.E.11b

  Locate and utilize current economic data to demonstrate how changes in exchange rates impact the purchasing power of individuals and businesses.

• SS24.E.11c

  Analyze why countries sometimes impose trade barriers and sometimes engage in free trade.

• SS24.E.11d

  Construct and explain examples of specialization and exchange.

01

What Students Need to Do

Students compare who can produce more with who gives up less to produce a good. They explain why shoppers, businesses, and countries trade, and why a country might limit imports. They use recent exchange rates to compare the dollar cost of foreign goods.

02

What Mastery Looks Like

Students identify absolute and comparative advantage from a production table and calculate opportunity costs. They set a trade price that benefits both sides. They calculate how a currency change affects an import price and explain who gains and who pays when a tariff is added.

03

Common Misconceptions

Students may think that producing more of everything means having a comparative advantage in everything. They may think a stronger dollar makes imports priced in foreign currency more expensive, or that tariffs help local producers without raising buyers' costs.

04

How to Assess It

Exit ticket: Country A can make 10 shirts or 5 phones, while Country B can make 6 shirts or 6 phones. Ask students to calculate the cost of one shirt in phones for each country, choose who should make shirts, and propose a trade price that benefits both.

1. 01

   Give pairs cards marked '10 shirts or 5 phones' and '6 shirts or 6 phones'; have them exchange four paper shirts for three paper phones.

2. 02

   Ask: 'Would a tariff on imported steel help mill workers but hurt carmakers? Who gains under free trade?'

3. 03

   Play exchange-rate bingo: call €100 at $1.05 or $1.20 per euro; students cover $105 or $120 on prepared cards.

4. 04

   Use the latest and month-earlier Federal Reserve H.10 rates to price a €10,000 parts order for a U.S. shop.

• SS24.WH.17a

  Explain motivations for countries to enter into global trade agreements.

• SS24.HG.14

  Explain how economic interdependence and globalization impact countries and their populations.

• SS24.CWI.9b

  Describe the costs and benefits of trade among nations in an interdependent world.