Today we will study international trade flows and financial flows. We will learn about how countries measure these flows through the current account and capital account and also discuss the causes and effects of trade imbalances.
Assignments
Read: Krugman (Module 41)
Watch: The video lecture for today's topic (linked above).
Optional: The videos linked below.
Formative Assessment (MCQ's): You will take a formal assessment during class. The assessment will consist of multiple-choice questions and one FRQ from an old AP Exam. Doing the problem of the day and ensuring that you understand it will help you prepare for today's formative assessment and help to ensure that you understand the concepts in this lesson.
Problem of the Day: Work cooperatively with another AP Economics student to construct a response to the following prompt. Complete the response in your notebook, NOTING WITH WHOM YOU WORKED.
Define each of the following terms: tariff, quota, current account, and capital account.
Use diagrams to explain how tariffs and quotas are inefficient.
Using an example, explain why the current account and capital account must balance.