Arkansas State University-Main Campus
Cooperative Learning Exercises to Teach the Gains from Trade part of Starting Point: Teaching and Learning Economics:Teaching Methods:Cooperative Learning:Examples
As a lead-in to discussions on supply and demand, students need to learn that trade leads to a higher standard of living than self-sufficiency. In the cooperative learning exercise, students are separated into groups representing one of two countries. Each group determines the allocation of hours across goods to maximize utility. Then, the groups/countries get together and try to negotiate trades that will increase their total utility. Because one country has an absolute advantage in both goods, students learn the role of comparative advantage in the gains from trade.
Dan Marburger part of Starting Point: Teaching and Learning Economics:About this Project:Project Participants
Professor of Economics Box 2442 State University, AR 72467 firstname.lastname@example.org Phone:870-680-8428 Background Information Dan Marburger is Professor of Economics at Arkansas State University. He earned his PhD at ...