Alabama Social Studies SS24.E.11a
The Standard
- SS24.E.11
- Explain why individuals, businesses, and nations engage in trading goods and services in the global economy.
Contrast absolute advantage to comparative advantage, and explain how they are used to measure gains from trade.
2024 Alabama Course of Study: Social Studies
Teacher's field guide
What This Standard Means
What Students Need to Do
- Students compare how much two countries can make with the same work time. They calculate what each country gives up to make a good, then use those costs to explain when trade helps both sides.
What Mastery Looks Like
- A student can spot when one country makes more of both goods but still benefits from trade. They can calculate each country's opportunity costs and show why a specific exchange helps both.
Common Misconceptions
- Students may think the country that makes more of both goods should make everything. Some compare output totals instead of what each country gives up. Others assume any trade price benefits both sides.
How to Assess It
- Exit ticket: A makes 8 shirts or 8 mugs per hour; B makes 6 shirts or 3 mugs. Identify the absolute and comparative advantage for each good, then use opportunity costs to explain why trading 3 shirts for 2 mugs helps both.
Lesson moves
Ways to Teach It
With counters, pairs model A making 8 shirts or 8 mugs and B making 6 shirts or 3 mugs, then trade.
Ask: If A makes more of both goods per hour, why might A still buy shirts from B? Require opportunity costs.
Post cards listing A: 8 shirts or 8 mugs, B: 6 shirts or 3 mugs; teams calculate costs and bid on trades.
Bakeries: A makes 12 loaves or 6 cakes hourly; B makes 8 loaves or 2 cakes; test trading 2 cakes for 6 loaves.
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Printable SS24.E.11a Worksheet
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Related Standards
- SS24.CWI.9b
Describe the costs and benefits of trade among nations in an interdependent world.
- SS24.E.11c
Analyze why countries sometimes impose trade barriers and sometimes engage in free trade.
- SS24.HG.14b
Explain the advantages and disadvantages of global trade agreements for both people and countries.
- SS24.E.3
Compare the methods that various economic systems use to allocate goods and services.
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