Transcript Lesson 23 Slides - Middle School History

LESSON 23 – MORALITY IN MARKETS: THE TWO FACES OF ADAM SMITH
Building Wealth through Expanded Trade
“From Trash to Treasure: A Voluntary Trading Game”
List the
Individual
Values across
Classroom
Citizens
Total Wealth in
the Classroom
Society
Change in
Wealth
[0: no value, 1: a little value, … 10: highest value possible]
Round 1: Classroom
wealth without trade
----
Round 2: Classroom
wealth under restricted
trade
Round 3: Classroom
wealth under free trade
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 23 – MORALITY IN MARKETS: THE TWO FACES OF ADAM SMITH
Why Free Trade Benefits
Everyone
1. Trade is voluntary. It does not take place
unless everyone involved agrees.
2. Many types of markets for goods,
services, and resources exist. Millions of
people come together freely to exchange
goods, services, and resources. They use
prices and information to guide their
decisions.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 23 – MORALITY IN MARKETS: THE TWO FACES OF ADAM SMITH
Why Free Trade Benefits
Everyone
3. Consumers benefit from getting goods
and services that they value.
a. They value purchased goods more than the
money they pay for the goods.
b. If the price of something is too high, they simply
do not buy it. They choose something else or save
the money.
c. Prices provide valuable information for
consumers.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 23 – MORALITY IN MARKETS: THE TWO FACES OF ADAM SMITH
Why Free Trade Benefits
Everyone
4. Producers benefit from the revenues the
sale of consumed items generate.
a. They either succeed or fail in producing what
consumers want.
b. They must use the revenues from sales to cover
the costs of producing goods and providing
services.
c. If they do not benefit from a trade, they do not
have to sell the product.
d. Prices provide valuable information to them.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 23 – MORALITY IN MARKETS: THE TWO FACES OF ADAM SMITH
Why Free Trade Benefits
Everyone
5. When consumers and producers agree on
a price and then trade, both benefit from
the exchange.
a. Consumers get something valued more than the
money used to buy the goods and services.
b. Producers receive the revenues from their sales.
These revenues are then used to cover the costs
of production. What is left is used to reward
producers for accepting the risks of doing
business in rapidly changing markets.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY