Traffic congestion and road tolls are familiar economic concepts for most undergraduates; however, students often have difficulty explaining exactly how theoretical principles like externalities and social welfare are related to their real-world experiences, such as driving. The authors present a classroom exercise to demonstrate how congestion…

In this article, the author describes an exercise in which two pricing problems (product bundling and the sharing of digital information goods) can be understood using the same analytical approach. The exercise allows students to calculate the correct numerical answers with relative ease, while the teaching plan demonstrates the importance of the…

Integrating interdisciplinary social studies topics and social responsibility concepts into a business education class can be meaningful for student learning. The discipline of social studies includes multiple areas such as economics, history, sociology, and anthropology. Social responsibility in a business sense means that companies are concerned…

The introduction of the concept of network effects is useful at the principles level to facilitate discussions of the determinants of monopoly, the need for standards in high-tech industries, and the general complexity of real-world competition. The author describes a demonstration and an extension that help students understand how consumers make…

Notes that using spreadsheets to teach microeconomics principles enables learning by doing in the exploration of basic concepts. Introduction of increasingly complex topics leads to exploration of theory and managerial decision making. (SK)

Discusses four reasons why economic forecasting courses are important: (1) forecasting skills are in demand by businesses; (2) forecasters are in demand; (3) forecasting courses have positive externalities; (4) and forecasting provides a real-world context. Describes what should be taught in an economic forecasting course. (CMK)

Describes a computer-aided supplement to the introductory microeconomics course that enhances students' understanding with simulation-based tools for reviewing what they have learned from lectures and conventional textbooks about comparing market equilibria. Includes a discussion of students' learning progressions and retention after using the…

Describes an online, securities market, research tool, called Borsa, to engage students in the exploration of asset pricing in microeconomics courses. Defines Borsa as related database files served on the Internet using a dedicated IP address. Discusses practical considerations in running the market. Offers questions that arise from using the…

Presents a simple technique for teaching the Cournot model to first-year microeconomic students. Involves demonstrating, without the use of derivatives, that out of all rectangles with a common perimeter, the square has the greatest area. (RLH)

Contends that, although most economics students are acquainted with the graphical analysis of the income and substitution effects of a price change, they often fail to appreciate that the same graphs provide information on the income elasticities of the two goods. Illustrates the proof of this concept using mathematical formulae and five graphic…

Contends that, despite ongoing criticism, Allen's arc elasticity formula remains entrenched in the microeconomics principles curriculum. Reviews the evolution and continuing scrutiny of the formula. Argues that the use of the geometric mean offers pedagogical advantages over the traditional arithmetic mean approach. (CFR)

Maintains that teachers and textbook graphics follow the same basic pattern in illustrating changes in demand curves when product prices increase. Asserts that the use of computer graphics will enable teachers to be more precise in their graphic presentation of price elasticity. (CFR)

This publication is an updated, edited merger of two earlier National Council on Economic Education documents: "A Framework for Teaching the Basic Concepts" and "Economics: What and When." The combined publication is designed to aid those who construct curricula or who provide economics instruction in U.S. schools. The book…

This book, in conjunction with the student activities books for macroeconomics and microeconomics, is designed for teaching the Advanced Placement Economics course. The book contains five units for the microeconomic portion and six units for the macroeconomic portion of the text. Along with the many activities are sample multiple-choice questions,…