Econ Ed Link: Benefits of Trade/comparative Advantage

Students can use this interactive activity to understand comparative advantage.

Article with charts and links to related material discusses how free trade is a result of comparative advantage, and how consumers can consume beyond their original production possibilities frontier if they specialize and trade.

Students take a closer look at comparative advantage. In this economics lesson, students discover details about opportunity cost, comparative advantage, and absolute advantage. Students participate in a simulation that requires them to...

This lesson plan focuses on the rising cost of healthcare in the United States. The objective of the lesson is to compare and contrast the health care systems in the United States and Canada.

Economists generally agree that free trade helps to improve the overall quality of life in countries that participate. However, disagreements do arise concerning trade agreements. This lesson looks at a disagreement between the US and EU...

This lesson analyzes the costs and benefits of homeownership and asks the student to describe the factors that affect affordability, use cost-benefit analysis and knowledge of home-buying procedures to reduce the costs, analyze the...

Learn how two parties can get better outcomes by specializing in their comparative advantage and trading in this video lecture. [8:56]

Trade benefits both agents when each specializes in what they have a comparative advantage in producing and trading with another agent who has a comparative advantage in something else. The gains from trade occur based on comparative...

When two agents have differing opportunity costs, there is potential for both of the to benefit if they specialize in what they each have comparative advantage in This video explores how two parties can get better outcomes by...

This lesson plan uses results from the 2008 Summer Olympic Games to explain that athletes specialize in sports and events for which they are most skilled for the same reasons that individuals and nations specialize in the production of...