Friday, December 24, 2010

The "Evolution of Markets" in Seventh Grade

Today's Planet Money Blog has a great piece on how markets evolve and trade makes everyone richer.  It involves candy and a seventh grade class.  I won't go farther than that, but it's a great exercise about how trade maximizes surplus. It was also on Morning Edition this morning.

You can even use it to explain why gift-giving can be viewed as inefficient.

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