AP Economics – 4/24/19
I. Bellwork:
| Grapefruit | Olives | |||
| Country X | 10/tons | 40/tons | ||
| Country Y | 15/tons | 30/tons |
Q&A Explain your answer and show/compare both mathematical relationships
- Which country has the absolute advantage in producing grapefruit?
- Which country has the absolute advantage in producing olives?
- Which country has the comparative advantage in producing grapefruit?
- Which country has the comparative advantage in producing olives?
II. Objectives:
- Explain the meaning of the balance of payments accounts
- Identify the determinants of international capital flows
III. Capital Flows and the Balance of Payments Pages 406-415
A. Modeling the Financial Account
- Underlying Determinants of International Capital Flows
- Two-way Capital Flows
IV. Classwork
- 41.1: Balance of Payments Transactions
- 41.2: Balance of Payments
- Macro 5.1- Balance of Payments
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