Economics

Economics-12/2/13 SSEIN2 The student will explain why countries sometimes erect trade barriers and sometimes advocate free trade. a. Define trade barriers as tariffs, quotas, embargoes, standards, and subsidies. b. Identify costs and benefits of trade barriers over time. c. List specific examples of trade barriers. d. List specific examples of trading blocks such as the EU, NAFTA, and ASEAN. e. Evaluate arguments for and against free trade. SSEIN3 The student will explain how changes in exchange rates can have an impact on the purchasing power of individuals in the United States and in other countries. a. Define exchange rate as the price of one nation’s currency in terms of another nation’s currency. b. Locate information on exchange rates. c. Interpret exchange rate tables. d. Explain why, when exchange rates change, some groups benefit and others lose. December 2, 2013-EOCT-10/9 & 10th Appetizer: The ability of one nation to make something at a lower opportunity cost than another nation can make it is called (A)an absolute advantage (B)a comparative advantage (C)a trade surplus (D)a trade deficit Main Course: Review: Shoes Phones U.S. 80 150 Brazil 60 20 Looking at this chart, which country has absolute advantage in producing shoes? Phones? Now, who has comparative advantage in producing shoes? Watch closely: who is giving up the least to make a pair of shoes: 80/80=US can make 1 pair of shoes by 150/80=giving up 1.8 phones Brazil, on the other hand (to produce 1 pair of shoes)60/60=1, only has to give up 20/60=1/3 of a phone! Who has comparative advantage? Download Exchange Rates and Interest · 3 types of taxes-notes · Trade Blocs and exchange rates · Green EOCT book-take notes on pages 91-92, 94-95-take your own notes, then we will discuss · To be handed in: Page 92(extra credit), page 93-1-3, page 96-1-5, and page 97-1-3 · **********For absent people, page 88-1-7 and page 89-1-3 · TOD-what questions do you have about trading blocs, exchange rates, and types of taxes?