1. Unit 5: Silk Road & Trade

2. Entry Task
If you did NOT finish yesterday’s webquest, please grab a computer and log in.
Find your webquest document and get working
If you did finish, do something productive & quietly wait for everyone else to finish

3. Entry Task When finished, save the document with your name
it to me at
Log off your laptop and put it back on the cart
On the CORRECT shelf
Plug it in!!!!!!

4. Activity – Follow Directions
Do NOT look inside your bag until I tell you to.
Look at the item in your bag BUT
Don’t take it out
Don’t tell anyone what it is

5. Glee Index How happy are you with your item? 1 3 5
Not Satisfied Extremely
Satisfied Satisfied

6. Trade Op 1
Please trade bags with your partner.
This is not optional.

7. Glee Index How happy are you with your item? 1 3 5
Not Satisfied Extremely
Satisfied Satisfied

8. Trade Op 2 You have the opportunity to trade items with someone else.
Rules:
Trade is completely voluntary
No coercion
No pitching products
You can only trade with people in your row

9. Glee Index How happy are you with your item? 1 3 5
Not Satisfied Extremely
Satisfied Satisfied

10. Trade Op 3 You have the opportunity to trade items with someone else.
Rules:
Trade is completely voluntary
No coercion
No pitching products

11. Glee Index How happy are you with your item? 1 3 5
Not Satisfied Extremely
Satisfied Satisfied

12. Discussion Do we see any trends happening?
What motives are there for trading?
What motives are there for NOT trading?
How do restrictions affect trade?

13. Major Concepts
Economics

14. DECISIONS MEAN COSTS
Getting something of value always costs something “There is no such thing as free lunch”

15. DECISIONS MEAN COSTS Every decision you make has an opportunity cost
Opportunity Cost: the next best alternative, not all of the possibilities
Choosing is refusing
Because people value different things, everyone’s opportunity costs might be different
Because people’s values differ, the opportunity cost of the same decision may differ from person to person

16. INCENTIVES MATTER Incentives drive behavior
Resources owned in common tend to be overused
When a resource isn’t owned, people don’t have a clear incentive to protect it
The “tragedy” of the commons isn’t an issue of greed or stupidity, but one of the rules of the game.
Private ownership comes with its own costs

17. VOLUNTARY TRADE Voluntary trade creates value
The benefits of trading far outweigh the costs in almost every situation
Trade improves people’s wealth and satisfaction
People won’t trade if the good being offered is worth less than the good they are asked to exchange