Creativity has become a hot topic in education. From President Barack Obama to Amazon's Jeff Bezos to "Newsweek" magazine, business leaders, major media outlets, government officials, and education policy makers are increasingly advocating including student creativity in the curriculum. But without a clear understanding of the nature of creativity…

Describes a classroom experiment in which students see how competitive markets underproduce in the presence of a positive externality. States that this experiment is used in a principles of economics course to introduce the idea of market failure. Explains that participants take the role of buyers of education, sellers of education, or interested…