Examines the behavior of long-run average cost when the firm knows it faces pecuniary economies or diseconomies of scale. Asserts that the central issue is the conditions under which the scale properties of the production function will or will not dominate the pecuniary effects of changing input prices. (CFR)

Maintains that a discussion of the Eurocurrency market is now a regular feature of most money and banking textbooks. Explains that the demand for Eurocurrency deposits stems, in part, from a transactions motive and recommends that this approach be added to textbook presentations on the subject. (CFR)

Develops a simple model of the arms race using fundamental microeconomic analysis. States that the exercise reinforces learning and demonstrates the practical usefulness of economic methodology to analyze the world. (DB)

Developed as part of a 37.5-hour microeconomics course, this lesson plan focuses on the concepts of supply and demand analysis used to determine market equilibrium. The objectives of the 50-minute lesson are to enable the student to: (1) explain how a demand schedule is derived from raw data; (2) graph a demand curve from the demand schedule; (3)…

Describes an experiment to determine whether an economics course affected student opinions about economic issues. Findings indicated that students adopted slightly more conservative opinions as a result of taking the economics course. (Author/DB)

Defines economics as an integral part of daily existence. Discusses the explicit and implicit elements of the U.S. Catholic Bishops' pastoral letter on the economy which critiques American culture. Urges educators to explore the implications of the pastoral in their respective disciplines and in the total school environment. (DMM)

Comments on Gregory Trandel's article that explores two teaching strategies using geometry and algebra to demonstrate the equivalence between two methods of measuring excess burden. States that for students with limited mathematics skills, measuring excess burden can be expressed algebraically using a simple formula (excess burden…

Presents a simple classroom simulation of the Lucas supply curve mechanism with rational expectations. Concludes that the exercise has proved very useful as an introduction to the concepts of rational and adaptive expectations, the Lucas supply curve, the natural rate hypothesis, and random supply shocks. (DB)

Summarizes four reasons for abandoning Keynesian economics and explains why the reasons should be disregarded. Argues that parts of Keynesian economics are worth preserving and teaching to students. (CMK)

This study involved the use of "economic reasoning," which refers to the application of the concept of cost-benefit analysis to personal decision making. The study examined the degree of economic reasoning employed by high school seniors who had received instruction in cost benefit analysis. The main purpose of the study was to compare the…

A model that can be used to teach secondary students about economic disparity and its effect on the total economic welfare of the country is presented. The model has three phases. In the first phase of curriculum planning, students' needs are determined, goals and objectives are set, and content is selected. The second phase concerns teaching…

Interest rates can significantly influence people's behavior. When rates decline, homeowners rush to buy new homes and refinance old mortgages; automobile buyers scramble to buy new cars; the stock market soars, and people tend to feel more optimistic about the future. But even though individuals respond to changes in rates, they may not fully…

Many generalizations sound simple enough--for example, "strong is good, weak is bad"--but they can be confusing when talking about money. This booklet explores how the U.S. dollar and foreign currencies affect each other and how their interaction affects the individual and the economy. The booklet contains the following sections:…

Provides an explanation of the post-World War II economic phenomenon of Japan as a process of economic convergence within the framework of the neoclassical Solo-Swan model of economic growth. States that this interpretation helps students understand economic growth and development and Japan's modern economic history. (JEH)