Lesson 4: Comparative Advantage and Trade
Duration of Days: 3
Lesson Objective
Students will calculate comparative advantage and explain why specialization and trade increase total output.
How do you determine which party has a comparative advantage?
Why does specialization lead to gains from trade even when one party is more efficient overall?
C3: D2.Eco.7.9-12 (Analyze the benefits and costs of trade)
CCSS: WHST.11-12.4 (Produce clear and coherent writing)
(DOK 3 – Strategic Thinking):
Through calculations and simulations, students learn how comparative advantage drives specialization and why trading partners can both benefit.
Use numerical examples and tables for visual learners
Group students to role-play trading scenarios
Provide extra challenges for advanced students (e.g., multi-good scenarios)
Simulation reflection explaining why trade improved total output