Bag Game - Trade Creates Wealth

CONTENT STANDARDS:

Standard 5: Voluntary Exchange – Voluntary exchange occurs only when all participating parties expect to gain. This is true for trade among individuals or organizations within a nation, and among individuals or organizations in different nations.

• Exchange is trading goods and services with people for other goods and services or money.
• People voluntarily exchange goods and services because they expect to be better off after the exchange.
• When people buy something, they value it more than it costs them; when people sell something, they value it less than the payment they receive.

LESSON DESCRIPTION:

This lesson involves students in a trading simulation designed to illustrate a complex marketplace in which goods and services are traded. Students use this experience to investigate the conditions that encourage or discourage trade among individuals.