Discusses four pedagogical issues that arise in teaching policy analysis to undergraduates. Describes three components of the case method approach. Outlines areas where the case method approach improved student performance and identifies its limitations. (CFR)

Asserts that a recent report suggests that students should have opportunities to become actively engaged in the application of economics. Finds that the case method approach was more useful than texts and lectures in learning about institutional arrangements, the use of economic data, and how to use economics to solve real problems. (CFR)