Title: 1.3 Comparative Advantage and Gains from Trade (Teacher Only)
Course: AP Macro Units 1 - 6 Sample Syllabus > Section: Section 1.3: Comparative Advantage and Gains from Trade

Comparative Advantage

This series of slides presents the production possibilities frontiers for Alphatown and Omegaville and illustrates their comparative advantage in the production of apples and potatoes, leading to specialization and trade.

•  Whiteboard (SMART/notebook)

•  PowerPoint (pptx)

https://www.stlouisfed.org/education/comparative-advantage

Is Trade a Zero-Sum Game? The Answer Lies in Candy

This simple trading activity demonstrates a key economic idea: Voluntary trade can make both the buyer and seller better off. Students first receive a piece of candy randomly. They then have the opportunity to trade that candy first with “elbow partners” (their borders) and then the whole class (globally). After each trade, satisfaction points are tallied. The video shows a presentation with the same trading activity, but on a larger scale, and explains that trade is not a zero-sum game.

Lesson author: Scott Wolla, Ph.D., Federal Reserve Bank of St. Louis

Ages: 12 to adult

Compelling Question: Is trade a zero-sum game?

Time Required: 15 to 20 minutes

https://www.stlouisfed.org/education/is-trade-a-zero-sum-game