This is true for trade among individuals or organizations within a nation, and usually among individuals or organizations in different nations. Students will be able to use this knowledge to negotiate exchanges and identify the gains to themselves and others. They will be able to compare the benefits and costs of policies that alter trade barriers between nations, such as tariffs and quotas. When individuals, regions, and nations specialize in what they can produce at the lowest cost and then trade with others, both production and consumption increase. Students will be able to use this knowledge to explain how they can benefit themselves and others by developing special skills and strengths.
Markets exist when buyers and sellers interact.
This interaction determines market prices and therefore allocates scarce goods and services. Students will be able to use this knowledge to identify markets in which they have participated as a buyer and as a seller and describe how the interaction of all buyers and sellers influences prices. They will also be able to predict how prices change when there is either a shortage or surplus of the product available. Prices send signals and provide incentives to buyers and sellers. When supply or demand changes, market prices adjust, affecting incentives.