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Teaching and Learning Alternatives to a Comparative Advantage Motivation for Trade

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  • James K. Self
  • William E. Becker

Abstract

Introductory economics courses emphasize opportunity cost, comparative advantage and specialization to show the benefits of trade. We assert that this emphasize leads to erroneous student mindset that trade requires specialization based on comparative advantage. We test students who have been exposed to the typical textbook and classroom presentation of specialization and trade with real but paradoxical situations where the same goods are both imported and exported by a country. Students are found to generally understand comparative advantage calculations but wrongfully apply the idea to this multiproduct trade situation for which specialization is not relevant.

Suggested Citation

  • James K. Self & William E. Becker, 2015. "Teaching and Learning Alternatives to a Comparative Advantage Motivation for Trade," CESifo Working Paper Series 5238, CESifo.
    • Handle: RePEc:ces:ceswps:_5238
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    References listed on IDEAS

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    1. Alan B. Krueger, 2001. "Teaching the Minimum Wage in Econ 101 in Light of the New Economics of the Minimum Wage," The Journal of Economic Education, Taylor & Francis Journals, vol. 32(3), pages 243-258, January.
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    5. William E. Becker, 2000. "Teaching Economics in the 21st Century," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 109-119, Winter.
    6. William E. Becker, 2004. "Economics for a Higher Education," International Review of Economic Education, Economics Network, University of Bristol, vol. 3(1), pages 52-62.
    7. Kim P. Huynh & David T. Jacho-Chávez & James K. Self, 2010. "The Efficacy of Collaborative Learning Recitation Sessions on Student Outcomes," American Economic Review, American Economic Association, vol. 100(2), pages 287-291, May.
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    More about this item

    Keywords

    comparative advantage; specialization; trade; introductory economics textbooks;
    All these keywords.

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General

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