Gains from Trade

5 Items

Gains from Trade

Introduction

Every day, we trade.

You might swap your old smartphone for a new model. The new one is better, so you’re willing to throw in some money, too.

If you eat at Chipotle, you exchange cash for a burrito. If you work at Chipotle, you're trading burrito-making for cash. And after work, when you hang out with friends, you're offering your good company in exchange for theirs.

Economics helps us understand how these trades, big and small, make up our economy and shape our society.

Learning Objectives

Students will understand that:

  • Voluntary exchange occurs only when all participating parties expect to gain.
  • In a voluntary exchange, one side’s gain does not mean the other side’s loss.

How to Use These Materials

Students can view the following essays and videos in any order, although we recommend starting with the next page. Teachers can use these as stand-alone lessons or plug them into your own lesson plan. Our quizzes can be taken here or embedded into your Google Classroom assignments.

If you have any questions, please email [email protected].