Opening Act

1. Opening Act • Sit in your appropriate Hatfield or McCoy seat. • Open your Binders to your Unit III TGG Materials and questions you worked on last class • Take a few minutes to review your responses with a neighbor while I take attendance

2. Agenda • TGG Memory refresher • Discuss Memo from Carlos Medine with the 3 questions • Block 5 needs to answer these • Receive Table 1: “Hours Needed to Produce Each Good” • Calculate hours • Look for Absolute Advantage • Receive Table 2: “Opportunity Costs of Production/Comparative Advantage” • Calculate Opportunity Cost for each island • Look for Comparative Advantage • No HW!!!!!!!

3. Opportunity Cost Part One: For each island, follow this process • Look for the lowest cost item. This will be the item that takes the fewest hours to produce. You will use the cost in hours for this item to determine the opportunity cost for producing the other items for each island. • Once you have found the hours for #1, use this formula for every item for that nation- x/lowest cost item, where x=the hours needed to produce each item. • Record your answers for # 2 in the appropriate space on table 2. • Once you have finished your island, do the other two on table 2. • You can form groups of three, and each person takes one island. • I will demonstrate using Abbydale

4. Opportunity Cost Part Two: Once your chart is complete, do this • Look at each Industry/Item and note the island that has the lowest opportunity cost in producing that good/service

5. Table 3 “Why Trade is Good” Specialization: determined by using Tables 1 & 2 • Look at table 2 for each industry and find the island with the lowest opportunity cost for that industry • Now, look at table 1 for the industry & island and see how many hours it takes them to produce that good/service • Record these hours in the appropriate blanks on table 3 • Finally, total the hours needed for production & record this at the bottom